PART 3—ADVANCED FUEL RECYCLING 
SEC. 133. ADVANCED FUEL RECYCLING PROGRAM. 
(a) IN GENERAL.—The Secretary, through the Director 
of the Office of Nuclear Energy, Science and Technology, 
shall conduct an advanced fuel recycling technology re-
search and development program to evaluate proliferation-
resistant fuel recycling and transmutation technologies 
which minimize environmental or public health and safety 
impacts as an alternative to aqueous reprocessing tech-
nologies deployed as of the date of enactment of this Act 
in support of evaluation of alternative national strategies 
for spent nuclear fuel and the Generation IV advanced reac-
tor concepts, subject to annual review by the Secretary’s Nu-
clear Energy Research Advisory Committee or other inde-
pendent entity, as appropriate. Opportunities to enhance 
progress of this program through international cooperation 
should be sought. 
(b) REPORTS.—The Secretary shall report on the ac-
tivities of the advanced fuel recycling technology research 
and development program, as part of the Department’s an-
nual budget submission. 
PART 4—UNIVERSITY PROGRAMS 
SEC. 134. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER-
ING SUPPORT. 
(a) ESTABLISHMENT.—The Secretary shall support a 
program to invest in human resources and infrastructure
in the nuclear sciences and engineering and related fields 
(including health physics and nuclear and radiochemistry), 
consistent with departmental missions related to civilian 
nuclear research and development. 
(b) DUTIES.—In carrying out the program under this 
section, the Secretary shall—
(1) establish a graduate and undergraduate fel-
lowship program to attract new and talented stu-
dents; 
(2) establish a Junior Faculty Research Initi-
ation Grant Program to assist institutions of higher 
education in recruiting and retaining new faculty in 
the nuclear sciences and engineering; 
(3) support fundamental nuclear sciences and 
engineering research through the Nuclear Engineering 
Education Research Program; 
(4) encourage collaborative nuclear research 
among industry, National Laboratories, and institu-
tions of higher education through the Nuclear Energy 
Research Initiative; and 
(5) support communication and outreach related 
to nuclear science and engineering. 
(c) STRENGTHENING UNIVERSITY RESEARCH
AND 
TRAINING
REACTORS
AND
ASSOCIATED
INFRASTRUC-
TURE.—Activities under this section may include—
(1) converting research reactors currently using 
high-enrichment fuels to low-enrichment fuels, up-
grading operational instrumentation, and sharing of 
reactors among institutions of higher education; 
(2) providing technical assistance, in collabora-
tion with the United States nuclear industry, in reli-
censing and upgrading training reactors as part of a 
student training program; and 
(3) providing funding, through the Innovations 
in Nuclear Infrastructure and Education Program, 
for reactor improvements as part of a focused effort 
that emphasizes research, training, and education. 
(d) 
UNIVERSITY-NATIONAL
LABORATORY
INTER-
ACTIONS.—The Secretary shall develop—
(1) a sabbatical fellowship program for profes-
sors at institutions of higher education to spend ex-
tended periods of time at National Laboratories in 
the areas of nuclear science and technology; and 
(2) a visiting scientist program in which Na-
tional Laboratory staff can spend time in academic 
nuclear science and engineering departments. 
The Secretary may provide fellowships for students to spend 
time at National Laboratories in the area of nuclear science 
with a member of the Laboratory staff acting as a mentor.
(e) OPERATING AND MAINTENANCE COSTS.—Funding 
for a research project provided under this section may be 
used to offset a portion of the operating and maintenance 
costs of a research reactor at an institution of higher edu-
cation used in the research project. 
PART 5—GEOLOGICAL ISOLATION OF SPENT 
FUEL 
SEC. 135. GEOLOGICAL ISOLATION OF SPENT FUEL. 
(a) IN GENERAL.—The Secretary shall establish a pro-
gram to determine the feasibility of deep borehole disposal 
of spent nuclear fuel and high-level radioactive waste. The 
program 
shall 
emphasize 
geological, 
chemical, 
and 
hydrological characterization of, and design of engineered 
structures for, deep borehole environments. 
(b) PLAN.—Not later than 6 months after the date of 
enactment of this Act, the Secretary shall transmit to the 
Congress a plan for the program under this section, includ-
ing milestones for achieving the purpose of the program. 
(c) FINAL REPORT.—Not later than 5 years after the 
date of enactment of this Act, the Secretary shall transmit 
to the Congress a final report on the findings of the program 
under this section.
Subtitle E—Fossil Energy 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
SEC. 141. FOSSIL ENERGY. 
(a) IN GENERAL.—The following sums are authorized 
to be appropriated to the Secretary for fossil energy re-
search, development, demonstration, and commercial appli-
cation activities, other than those described in subsection 
(b), including activities authorized under this subtitle but 
not including activities authorized under title V: 
(1) For fiscal year 2004, $530,000,000. 
(2) For fiscal year 2005, $556,000,000. 
(3) For fiscal year 2006, $583,000,000. 
(4) For fiscal year 2007, $611,000,000. 
No less than 60 percent of the amount appropriated for each 
fiscal year under this subsection shall be available for ac-
tivities related to the coal research program under section 
142(a). 
(b) ULTRA-DEEPWATER AND UNCONVENTIONAL RE-
SOURCES.—
(1) OIL AND GAS LEASE INCOME.—For each of 
fiscal years 2004 through 2010, from any royalties, 
rents, and bonuses derived from Federal onshore and 
offshore oil and gas leases issued under the Outer 
Continental Shelf Lands Act and the Mineral Leasing 
Act which are deposited in the Treasury, and after
distribution of any such funds as described in para-
graph (2), an amount equal to 7.5 percent of the 
amount of royalties, rents, and bonuses derived from 
those leases deposited in the Treasury shall be depos-
ited into the Ultra-Deepwater and Unconventional 
Natural Gas and Other Petroleum Research Fund (in 
this subsection referred to as the Fund). For purposes 
of this subsection, the term ‘‘royalties’’ excludes pro-
ceeds from the sale of royalty production taken in 
kind and royalty production that is transferred under 
section 27(a)(3) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1353(a)(3)). Monies in the Fund shall 
be available to the Secretary for obligation under part 
3, without fiscal year limitation, to the extent pro-
vided in advance in appropriations Acts. 
(2) PRIOR
DISTRIBUTIONS.—The distributions 
described in paragraph (1) are those required by 
law—
(A) to States and to the Reclamation Fund 
under the Mineral Leasing Act (30 U.S.C. 
191(a)); and 
(B) to other funds receiving monies from 
Federal oil and gas leasing programs, includ-
ing—
(i) any recipients pursuant to section 
8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)); 
(ii) the Land and Water Conservation 
Fund, pursuant to section 2(c) of the Land 
and Water Conservation Fund Act of 1965 
(16 U.S.C. 4601–5(c)); and 
(iii) the Historic Preservation Fund, 
pursuant to section 108 of the National 
Historic Preservation Act (16 U.S.C. 470h).
(3) 
ALLOCATION.—Amounts 
made 
available 
under this subsection in each fiscal year shall be allo-
cated as follows: 
(A) 67.5 percent shall be for ultra-deepwater 
natural gas and other petroleum activities under 
section 145; 
(B) 22.5 percent shall be for unconventional 
natural gas and other petroleum resource activi-
ties under section 146; and 
(C) 10 percent shall be for research com-
plementary to research under section 144(b)(1) 
through (3). 
(c) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized:
(1) FUEL CELL PROTON EXCHANGE MEMBRANE 
TECHNOLOGY.—For activities under section 142(c)(2), 
$28,000,000 for each of the fiscal years 2004 through 
2007. 
(2) COAL MINING TECHNOLOGIES.—For activities 
under section 143—
(A) for fiscal year 2004, $12,000,000; and 
(B) for fiscal year 2005, $15,000,000. 
(3) OFFICE OF ARCTIC ENERGY.—For the Office 
of Arctic Energy under section 3197 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106–398), $25,000,000 for 
each of fiscal years 2004 through 2007. 
(d) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for the Office of 
Arctic Energy under section 3197 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106–398), $25,000,000 for each of fiscal years 
2008 through 2011. 
(e) LIMITS ON USE OF FUNDS.—
(1) EXCLUSIONS.—None of the funds authorized 
under this section may be used for—
(A) Fossil Energy Environmental Restora-
tion; or 
(B) Import/Export Authorization.
(2) UNIVERSITY
COAL
MINING
RESEARCH.—Of 
the funds authorized under subsection (c)(2), not less 
than 20 percent of the funds appropriated for each 
fiscal year shall be dedicated to research and develop-
ment carried out at institutions of higher education. 
PART 2—RESEARCH PROGRAMS 
SEC. 142. FOSSIL ENERGY RESEARCH PROGRAMS. 
(a) COAL RESEARCH.—(1) In addition to the Clean 
Coal Power Initiative authorized under title V, the Sec-
retary shall conduct a program of research, development, 
demonstration, and commercial application for coal and 
power systems, including—
(A) central systems; 
(B) sequestration research and development; 
(C) fuels; 
(D) advanced research; and 
(E) advanced separation technologies. 
(2) Not later than 6 months after the date of enactment 
of this Act, the Secretary shall transmit to the Congress a 
report providing—
(A) a detailed description of how proposals will 
be solicited and evaluated;
(B) a list of activities and technical milestones; 
and
(C) a description of how these activities will 
complement and not duplicate the Clean Coal Power 
Initiative authorized under title V. 
(b) OIL AND GAS RESEARCH.—The Secretary shall 
conduct a program of research, development, demonstration, 
and commercial application on oil and gas, including—
(1) exploration and production; 
(2) gas hydrates; 
(3) reservoir life and extension; 
(4) transportation and distribution infrastruc-
ture; 
(5) ultraclean fuels; 
(6) heavy oil and oil shale; and 
(7) environmental research. 
(c) FUEL CELLS.—(1) In coordination with the pro-
grams described in the Spark M. Matsunaga Hydrogen Re-
search, Development, and Demonstration Act of 1990, as 
amended by subtitle H of this Act, the Secretary shall con-
duct a program of research, development, demonstration, 
and commercial application on fuel cells for low-cost, high-
efficiency, fuel-flexible, modular power systems. 
(2) The demonstrations shall include fuel cell proton 
exchange membrane technology for commercial, residential, 
and transportation applications, and distributed genera-
tion systems, utilizing improved manufacturing production 
and processes. 
(d) NATURAL GAS AND OIL DEPOSITS REPORT.—Not 
later than 2 years after the date of the enactment of this 
Act, and at 2-year intervals thereafter, the Secretary of the 
Interior, in consultation with other appropriate Federal 
agencies, shall transmit a report to the Congress of the latest 
estimates of natural gas and oil reserves, reserves growth, 
and undiscovered resources in Federal and State waters off 
the coast of Louisiana and Texas. 
(e) TECHNOLOGY TRANSFER.—To the maximum ex-
tent practicable, existing technology transfer mechanisms 
shall be used to implement oil and gas exploration and pro-
duction technology transfer programs. 
SEC. 143. RESEARCH AND DEVELOPMENT FOR COAL MIN-
ING TECHNOLOGIES. 
(a) ESTABLISHMENT.—The Secretary shall carry out 
a program of research and development on coal mining 
technologies. The Secretary shall cooperate with appro-
priate Federal agencies, coal producers, trade associations, 
equipment manufacturers, institutions of higher education 
with mining engineering departments, and other relevant 
entities. 
(b) PROGRAM.—The research and development activi-
ties carried out under this section shall—
(1) be based on the mining research and develop-
ment priorities identified by the Mining Industry of 
the Future Program and in the recommendations 
from relevant reports of the National Academy of 
Sciences on mining technologies; and 
(2) expand mining research capabilities at insti-
tutions of higher education.
PART 3—ULTRA-DEEPWATER AND UNCONVEN-
TIONAL NATURAL GAS AND OTHER PETRO-
LEUM RESOURCES 
SEC. 144. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this part of research, development, dem-
onstration, and commercial application of technologies for 
ultra-deepwater and unconventional natural gas and other 
petroleum resource exploration and production, including 
safe operations and environmental mitigation (including 
reduction of greenhouse gas emissions and sequestration of 
carbon). 
(b) PROGRAM ELEMENTS.—The program under this 
part shall address the following areas, including improving 
safety and minimizing environmental impacts of activities 
within each area: 
(1) Ultra-deepwater technology. 
(2) Ultra-deepwater architecture.
(3) Unconventional natural gas and other petro-
leum resource exploration and production technology. 
(c) LIMITATION ON LOCATION OF FIELD ACTIVITIES.—
Field activities under the program under this part shall 
be carried out only—
(1) in—
(A) areas in the territorial waters of the 
United States not under any Outer Continental 
Shelf moratorium as of September 30, 2002; 
(B) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(C) areas onshore in the United States on 
State or private land, subject to applicable law; 
and 
(2) with the approval of the appropriate Federal 
or State land management agency or private land 
owner. 
(d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY 
LABORATORY.—The Secretary, through the National En-
ergy Technology Laboratory, shall carry out research com-
plementary to research under subsection (b).
(e) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this part, the Secretary shall con-
sult regularly with the Secretary of the Interior. 
SEC. 145. ULTRA-DEEPWATER PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under paragraphs (1) and (2) of section 144(b), 
to maximize the value of the ultra-deepwater natural gas 
and other petroleum resources of the United States by in-
creasing the supply of such resources and by reducing the 
cost and increasing the efficiency of exploration for and 
production of such resources, while improving safety and 
minimizing environmental impacts. 
(b) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all aspects 
of the program under this section. 
(c) ROLE OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall contract 
with a consortium to—
(A) manage awards pursuant to subsection 
(f)(4); 
(B) make recommendations to the Secretary 
for project solicitations; 
(C) disburse funds awarded under sub-
section (f) as directed by the Secretary in accord-
ance with the annual plan under subsection (e); 
and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not assign 
any activities to the program consortium except as 
specifically authorized under this section. 
(3) CONFLICT OF INTEREST.—(A) The Secretary 
shall establish procedures—
(i) to ensure that each board member, offi-
cer, or employee of the program consortium who 
is in a decisionmaking capacity under subsection 
(f)(3) or (4) shall disclose to the Secretary any 
financial interests in, or financial relationships 
with, applicants for or recipients of awards 
under this section, including those of his or her 
spouse or minor child, unless such relationships 
or interests would be considered to be remote or 
inconsequential; and 
(ii) to require any board member, officer, or 
employee with a financial relationship or inter-
est disclosed under clause (i) to recuse himself or 
herself from any review under subsection (f)(3) 
or oversight under subsection (f)(4) with respect 
to such applicant or recipient.
(B) The Secretary may disqualify an applica-
tion or revoke an award under this section if a board 
member, officer, or employee has failed to comply 
with procedures required under subparagraph (A)(ii). 
(d) SELECTION OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall select the 
program consortium through an open, competitive 
process. 
(2) MEMBERS.—The program consortium may 
include corporations, institutions of higher education, 
National Laboratories, or other research institutions. 
After submitting a proposal under paragraph (4), the 
program consortium may not add members without 
the consent of the Secretary. 
(3) TAX STATUS.—The program consortium shall 
be an entity that is exempt from tax under section 
501(c)(3) of the Internal Revenue Code of 1986. 
(4) SCHEDULE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary shall 
solicit proposals for the creation of the program con-
sortium, which must be submitted not less than 180 
days after the date of enactment of this Act. The Sec-
retary shall select the program consortium not later 
than 240 days after such date of enactment.
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall—
(A) list all members of the consortium;
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected as 
the program consortium, an applicant must be an en-
tity whose members collectively have demonstrated ca-
pabilities in planning and managing research, devel-
opment, demonstration, and commercial application 
programs in natural gas or other petroleum explo-
ration or production. 
(7) CRITERION.—The Secretary may consider the 
amount of the fee an applicant proposes to receive 
under subsection (g) in selecting a consortium under 
this section. 
(e) ANNUAL PLAN.—
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.—(A) Before drafting an an-
nual plan under this subsection, the Secretary shall 
solicit specific written recommendations from the pro-
gram consortium for each element to be addressed in 
the plan, including those described in paragraph (4). 
The Secretary may request that the program consor-
tium submit its recommendations in the form of a 
draft annual plan. 
(B) The Secretary shall submit the recommenda-
tions of the program consortium under subparagraph 
(A) to the Ultra-Deepwater Advisory Committee es-
tablished under section 148(a) for review, and such 
Advisory Committee shall provide to the Secretary 
written comments by a date determined by the Sec-
retary. The Secretary may also solicit comments from 
any other experts. 
(C) The Secretary shall consult regularly with 
the program consortium throughout the preparation 
of the annual plan. 
(3) PUBLICATION.—The Secretary shall transmit 
to the Congress and publish in the Federal Register 
the annual plan, along with any written comments 
received under paragraph (2)(A) and (B). The annual
plan shall be transmitted and published not later 
than 60 days after the date of enactment of an Act 
making appropriations for a fiscal year for the pro-
gram under this section. 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the program 
under this section and shall include—
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out re-
search, development, demonstration, or commer-
cial application activities, including the topics 
for such work, who would be eligible to apply, se-
lection criteria, and the duration of awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (f)(4). 
(f) AWARDS.—
(1) IN
GENERAL.—The Secretary shall make 
awards to carry out research, development, dem-
onstration, and commercial application activities 
under the program under this section. The program 
consortium shall not be eligible to receive such 
awards, but members of the program consortium may 
receive such awards.
(2) PROPOSALS.—The Secretary shall solicit pro-
posals for awards under this subsection in such man-
ner and at such time as the Secretary may prescribe, 
in consultation with the program consortium. 
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected 
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program consor-
tium or of a member of the program consortium. 
(4) OVERSIGHT.—(A) The program consortium 
shall oversee the implementation of awards under this 
subsection, consistent with the annual plan under 
subsection (e), including disbursing funds and moni-
toring activities carried out under such awards for 
compliance with the terms and conditions of the 
awards. 
(B) Nothing in subparagraph (A) shall limit the 
authority or responsibility of the Secretary to oversee 
awards, or limit the authority of the Secretary to re-
view or revoke awards. 
(C) The Secretary shall provide to the program 
consortium the information necessary for the program
consortium to carry out its responsibilities under this 
paragraph. 
(g) FEE.—
(1) IN GENERAL.—To compensate the program 
consortium for carrying out its activities under this 
section, the Secretary shall provide to the program 
consortium a fee in an amount not to exceed 7.5 per-
cent of the amounts awarded under subsection (f) for 
each fiscal year. 
(2) ADVANCE.—The Secretary shall advance 
funds to the program consortium upon selection of the 
consortium, which shall be deducted from amounts to 
be provided under paragraph (1). 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and funds 
provided under awards made under subsection (f), have 
been expended in a manner consistent with the purposes 
and requirements of this part. The auditor shall transmit 
a report annually to the Secretary, who shall transmit the 
report to Congress, along with a plan to remedy any defi-
ciencies cited in the report.
SEC. 146. UNCONVENTIONAL NATURAL GAS AND OTHER PE-
TROLEUM RESOURCES PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out ac-
tivities under section 144(b)(3), to maximize the value of 
the onshore unconventional natural gas and other petroleum 
resources of the United States by increasing the supply of
such resources and by reducing the cost and increasing the 
efficiency of exploration for and production of such re-
sources, while improving safety and minimizing environ-
mental impacts. 
(b) AWARDS.—
(1) IN GENERAL.—The Secretary shall carry out 
this section through awards made through an open, 
competitive process. 
(2) CONSORTIA.—In carrying out paragraph (1), 
the Secretary shall give preference to making awards 
to consortia. 
(c) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided under awards made under this sec-
tion have been expended in a manner consistent with the 
purposes and requirements of this part. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report.
(d) FOCUS AREAS.—Awards under this section may 
focus on areas including advanced coal-bed methane, deep 
drilling, natural gas production from tight sands, natural 
gas production from gas shales, innovative exploration and 
production techniques, enhanced recovery techniques, and 
environmental mitigation of unconventional natural gas 
and other petroleum resources exploration and production. 
(e) ACTIVITIES BY THE UNITED STATES GEOLOGICAL 
SURVEY.—The Secretary of the Interior, through the United 
States Geological Survey, shall, where appropriate, carry 
out programs of long-term research to complement the pro-
grams under this section. 
SEC. 147. ADDITIONAL REQUIREMENTS FOR AWARDS. 
(a) DEMONSTRATION PROJECTS.—An application for 
an award under this part for a demonstration project shall 
describe with specificity the intended commercial use of the 
technology to be demonstrated. 
(b) FLEXIBILITY
IN
LOCATING
DEMONSTRATION 
PROJECTS.—Subject to the limitation in section 144(c), a 
demonstration project under this part relating to an ultra-
deepwater technology or an ultra-deepwater architecture 
may be conducted in deepwater depths. 
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 
award under this part is made to a consortium (other than 
the program consortium), the consortium shall provide to
the Secretary a signed contract agreed to by all members 
of the consortium describing the rights of each member to 
intellectual property used or developed under the award. 
(d) TECHNOLOGY TRANSFER.—Each recipient of an 
award under this part shall conduct technology transfer ac-
tivities, as appropriate, and outreach activities pursuant 
to section 192. 
(e) COST-SHARING REDUCTION
FOR INDEPENDENT 
PRODUCERS.—In applying the cost-sharing requirements 
under section 185 to an award under this part made solely 
to an independent producer of oil or gas, the Secretary may 
reduce the applicable non-Federal requirement in such sec-
tion to a level not less than 10 percent of the cost of the 
project. 
SEC. 148. ADVISORY COMMITTEES. 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this section, the Sec-
retary shall establish an advisory committee to be 
known as the Ultra-Deepwater Advisory Committee. 
(2) 
MEMBERSHIP.—The 
advisory 
committee 
under this subsection shall be composed of members 
appointed by the Secretary and including—
(A) individuals with extensive research ex-
perience or operational knowledge of offshore
natural gas and other petroleum exploration and 
production; 
(B) individuals broadly representative of 
the affected interests in ultra-deepwater natural 
gas and other petroleum production, including 
interests in environmental protection and safe 
operations; 
(C) no individuals who are Federal employ-
ees; and 
(D) no individuals who are board members, 
officers, or employees of the program consortium. 
(3) DUTIES.—The advisory committee under this 
subsection shall—
(A) advise the Secretary on the development 
and implementation of programs under this part 
related to ultra-deepwater natural gas and other 
petroleum resources; and 
(B) carry out section 145(e)(2)(B). 
(4) COMPENSATION.—A member of the advisory 
committee under this subsection shall serve without 
compensation but shall receive travel expenses, includ-
ing per diem in lieu of subsistence, in accordance 
with applicable provisions under subchapter I of 
chapter 57 of title 5, United States Code.
(b) UNCONVENTIONAL RESOURCES TECHNOLOGY AD-
VISORY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this section, the Sec-
retary shall establish an advisory committee to be 
known as the Unconventional Resources Technology 
Advisory Committee. 
(2) 
MEMBERSHIP.—The 
advisory 
committee 
under this subsection shall be composed of members 
appointed by the Secretary and including—
(A) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production, including inde-
pendent oil and gas producers; 
(B) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration 
and production, including interests in environ-
mental protection and safe operations; and 
(C) no individuals who are Federal employ-
ees. 
(3) DUTIES.—The advisory committee under this 
subsection shall advise the Secretary on the develop-
ment and implementation of activities under this
part related to unconventional natural gas and other 
petroleum resources. 
(4) COMPENSATION.—A member of the advisory 
committee under this subsection shall serve without 
compensation but shall receive travel expenses, includ-
ing per diem in lieu of subsistence, in accordance 
with applicable provisions under subchapter I of 
chapter 57 of title 5, United States Code. 
(c) PROHIBITION.—No advisory committee established 
under this section shall make recommendations on funding 
awards to consortia or for specific projects. 
SEC. 149. LIMITS ON PARTICIPATION. 
(a) IN GENERAL.—An entity shall be eligible to receive 
an award under this part only if the Secretary finds—
(1) that the entity’s participation in the pro-
gram under this part would be in the economic inter-
est of the United States; and 
(2) that either—
(A) the entity is a United States-owned en-
tity organized under the laws of the United 
States; or 
(B) the entity is organized under the laws 
of the United States and has a parent entity or-
ganized under the laws of a country which af-
fords—
(i) to United States-owned entities op-
portunities, comparable to those afforded to 
any other entity, to participate in any co-
operative research venture similar to those 
authorized under this part;
(ii) to United States-owned entities 
local investment opportunities comparable 
to those afforded to any other entity; and 
(iii) adequate and effective protection 
for the intellectual property rights of United 
States-owned entities. 
(b) SENSE OF CONGRESS AND REPORT.—It is the 
Sense of the Congress that ultra-deepwater technology devel-
oped under this part is to be developed primarily for pro-
duction of ultra-deepwater natural gas and other petroleum 
resources of the United States, and that this priority is to 
be reflected in the terms of grants, contracts, and coopera-
tive agreements entered under this part. As part of the an-
nual Departmental budget submission, the Secretary shall 
report on all steps taken to implement the policy described 
in this subsection. 
SEC. 150. FUND. 
There is hereby established in the Treasury of the 
United States a separate fund to be known as the ‘‘Ultra-
Deepwater and Unconventional Natural Gas and Other Pe-
troleum Research Fund’’.
SEC. 150A. TRANSFER OF ADVANCED OIL AND GAS EXPLO-
RATION AND PRODUCTION TECHNOLOGIES. 
(a) ASSESSMENT.—The Secretary shall review tech-
nology programs throughout the Federal Government to as-
sess the suitability of technologies developed thereunder for 
use in ultradeep drilling research, development, demonstra-
tion, and commercial application. 
(b) TECHNOLOGY TRANSFER.—Not later than 1 year 
after the date of enactment of this Act, the Secretary shall 
issue a solicitation seeking organizations knowledgeable of 
the technology needs of the ultradeep drilling industry. The 
Secretary shall select the most qualified applicant to man-
age a program to transfer technologies the Secretary deter-
mines suitable under subsection (a) to appropriate entities. 
The organization selected under section 145(d) shall not be 
eligible for selection under this subsection. 
(c) FUNDING.—From the funds available under section 
141(b)(3)(C), $1,000,000 shall be available to carry out this 
section in each of the fiscal years 2004 through 2007. 
SEC. 151. SUNSET. 
The authority provided by this part shall terminate 
on September 30, 2010.
SEC. 152. DEFINITIONS. 
In this part: 
(1) DEEPWATER.—The term ‘‘deepwater’’ means 
a water depth that is greater than 200 but less than 
1,500 meters. 
(2) PROGRAM
CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 145(d). 
(3) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(4) ULTRA-DEEPWATER.—The term ‘‘ultra-deep-
water’’ means a water depth that is equal to or great-
er than 1,500 meters. 
(5) ULTRA-DEEPWATER
ARCHITECTURE.—The 
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or pro-
duction of, natural gas or other petroleum resources 
located at ultra-deepwater depths. 
(6) ULTRA-DEEPWATER TECHNOLOGY.—The term 
‘‘ultra-deepwater technology’’ means a discrete tech-
nology that is specially suited to address one or more 
challenges associated with the exploration for, or pro-