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(C) CONSULTATION.—The Secretary shall consult regu-
larly with the program consortium throughout the prepara-
tion of the annual plan. 
(3) PUBLICATION.—The Secretary shall transmit to Con-
gress and publish in the Federal Register the annual plan, 
along with any written comments received under paragraph 
(2)(A) and (B). 
(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 to carry out 
research, development, demonstration, or commercial 
application activities, including the topics for such work, 
who would be eligible to apply, selection criteria, and the 
duration of awards; and 
(B) a description of the activities expected of the pro-
gram consortium to carry out subsection (f)(3). 
(5) ESTIMATES OF INCREASED ROYALTY RECEIPTS.—The Sec-
retary, in consultation with the Secretary of the Interior, shall 
provide an annual report to Congress with the President’s 
budget on the estimated cumulative increase in Federal royalty 
receipts (if any) resulting from the implementation of this sub-
title. The initial report under this paragraph shall be submitted 
in the first President’s budget following the completion of the 
first annual plan required under this subsection. 
(f) AWARDS.— 
(1) IN GENERAL.—Upon approval of the Secretary the pro-
gram consortium shall make awards to research performers 
to carry out research, development, demonstration, and 
commercial application activities under the program under this 
section. The program consortium shall not be eligible to receive 
such awards, but provided that conflict of interest procedures 
in section 999B(c)(3) are followed, entities who are members 
of the program consortium are not precluded from receiving 
research awards as either individual research performers or 
as research performers who are members of a research 
collaboration. 
(2) PROPOSALS.—Upon approval of the Secretary the pro-
gram consortium shall solicit proposals for awards under this 
subsection in such manner and at such time as the Secretary 
may prescribe, in consultation with the program consortium. 
(3) OVERSIGHT.— 
(A) IN GENERAL.—The program consortium shall over-
see the implementation of awards under this subsection, 
consistent with the annual plan under subsection (e), 
including disbursing funds and monitoring activities car-
ried out under such awards for compliance with the terms 
and conditions of the awards. 
(B) EFFECT.—Nothing in subparagraph (A) shall limit 
the authority or responsibility of the Secretary to oversee 
awards, or limit the authority of the Secretary to review 
or revoke awards. 
(g) ADMINISTRATIVE COSTS.— 
(1) IN GENERAL.—To compensate the program consortium 
for carrying out its activities under this section, the Secretary 
shall provide to the program consortium funds sufficient to 
administer the program. This compensation may include a
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management fee consistent with Department of Energy con-
tracting practices and procedures. 
(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 independent auditor, 
which shall include a review by the General Accountability Office, 
to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under sub-
section (f), have been expended in a manner consistent with the 
purposes and requirements of this subtitle. The auditor shall 
transmit a report (including any review by the General Account-
ability Office) annually to the Secretary, who shall transmit the 
report to Congress, along with a plan to remedy any deficiencies 
cited in the report. 
(i) 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 programs under this section. 
(j) PROGRAM REVIEW AND OVERSIGHT.—The National Energy 
Technology Laboratory, on behalf of the Secretary, shall (1) issue 
a competitive solicitation for the program consortium, (2) evaluate, 
select, and award a contract or other agreement to a qualified 
program consortium, and (3) have primary review and oversight 
responsibility for the program consortium, including review and 
approval of research awards proposed to be made by the program 
consortium, to ensure that its activities are consistent with the 
purposes and requirements described in this subtitle. Up to 5 per-
cent of program funds allocated under paragraphs (1) through (3) 
of section 999H(d) may be used for this purpose, including program 
direction and the establishment of a site office if determined to 
be necessary to carry out the purposes of this subsection. 
SEC. 999C. ADDITIONAL REQUIREMENTS FOR AWARDS. 
(a) DEMONSTRATION PROJECTS.—An application for an award 
under this subtitle for a demonstration project shall describe with 
specificity the intended commercial use of the technology to be 
demonstrated. 
(b) FLEXIBILITY IN LOCATING DEMONSTRATION PROJECTS.—Sub-
ject to the limitation in section 999A(c), a demonstration project 
under this subtitle 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 subtitle 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.—Two and one-half percent of the 
amount of each award made under this subtitle shall be designated 
for technology transfer and outreach activities under this subtitle. 
(e) COST SHARING REDUCTION FOR INDEPENDENT PRODUCERS.—
In applying the cost sharing requirements under section 988 to 
an award under this subtitle the Secretary may reduce or eliminate 
the non-Federal requirement if the Secretary determines that the
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reduction is necessary and appropriate considering the technological 
risks involved in the project. 
(f) INFORMATION SHARING.—All results of the research adminis-
tered by the program consortium shall be made available to the 
public consistent with Department policy and practice on informa-
tion sharing and intellectual property agreements. 
SEC. 999D. ADVISORY COMMITTEES. 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days after the 
date of enactment of this Act, the Secretary shall establish 
an advisory committee to be known as the Ultra-Deepwater 
Advisory Committee. 
(2) MEMBERSHIP.—The Advisory Committee under this sub-
section shall be composed of members appointed by the Sec-
retary, including— 
(A) individuals with extensive research experience 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 petro-
leum production, including interests in environmental 
protection and safe operations; 
(C) no individuals who are Federal employees; and 
(D) no individuals who are board members, officers, 
or employees of the program consortium. 
(3) DUTIES.—The Advisory Committee under this sub-
section shall— 
(A) advise the Secretary on the development and 
implementation of programs under this subtitle related 
to ultra-deepwater natural gas and other petroleum 
resources; and 
(B) carry out section 999B(e)(2)(B). 
(4) COMPENSATION.—A member of the Advisory Committee 
under this subsection shall serve without compensation but 
shall receive travel expenses in accordance with applicable 
provisions under subchapter I of chapter 57 of title 5, United 
States Code. 
(b) UNCONVENTIONAL RESOURCES TECHNOLOGY ADVISORY COM-
MITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days after the 
date of enactment of this Act, the Secretary shall establish 
an advisory committee to be known as the Unconventional 
Resources Technology Advisory Committee. 
(2) MEMBERSHIP.—The Secretary shall endeavor to have 
a balanced representation of members on the Advisory Com-
mittee to reflect the breadth of geographic areas of potential 
gas supply. The Advisory Committee under this subsection 
shall be composed of members appointed by the Secretary, 
including— 
(A) a majority of members who are employees or rep-
resentatives of independent producers of natural gas and 
other petroleum, including small producers; 
(B) individuals with extensive research experience or 
operational knowledge of unconventional natural gas and 
other petroleum resource exploration and production;