210 
ment, or an employee of a national laboratory acting 
within the scope of employment; 
(5) shall not use Federal funding or other Fed-
eral resources to compete for the prize; and 
(6) shall not be an entity acting on behalf of 
any foreign government or agent. 
SEC. 1205. INTELLECTUAL PROPERTY. 
The Federal Government shall not, by virtue of offer-
ing or awarding a prize under this title, be entitled to any 
intellectual property rights derived as a consequence of, 
or in direct relation to, the participation by a registered 
participant in a competition authorized by this title. This 
section shall not be construed to prevent the Federal Gov-
ernment from negotiating a license for the use of intellec-
tual property developed for a prize competition under this 
title. The Federal Government may seek assurances that 
technologies for which prizes are awarded under this title 
are offered for commercialization in the event an award 
recipient does not take, or is not expected to take within 
a reasonable time, effective steps to achieve practical ap-
plication of the technology. 
SEC. 1206. WAIVER OF LIABILITY. 
The Secretary may require registered participants to 
waive claims against the Federal Government and the ad-
ministering entity (except claims for willful misconduct) 
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for any injury, death, damage, or loss of property, revenue, 
or profits arising from the registered participants’ partici-
pation in a competition under this title. The Secretary 
shall give notice of any waiver required under this section 
in the notice required by section 1203(b)(2). The Sec-
retary may not require a registered participant to waive 
claims against the administering entity arising out of the 
unauthorized use or disclosure by the administering entity 
of the registered participant’s intellectual property, trade 
secrets, or confidential business information. 
SEC. 1207. AUTHORIZATION OF APPROPRIATIONS. 
(a) AWARDS.—40 percent of amounts in the Amer-
ican Energy Trust Fund shall be available without further 
appropriation to carry out specified provisions of this sec-
tion. 
(b) TREATMENT
OF AWARDS.—Amounts received 
pursuant to an award under this title may not be taxed 
by any Federal, State, or local authority. 
(c) ADMINISTRATION.—In addition to the amounts 
authorized under subsection (a), there are authorized to 
be appropriated to the Secretary for each of fiscal years 
2009 through 2020 $2,000,000 for the administrative 
costs of carrying out this title. 
(d) CARRYOVER OF FUNDS.—Funds appropriated for 
prize awards under this title shall remain available until 
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expended and may be transferred, reprogrammed, or ex-
pended for other purposes only after the expiration of 11 
fiscal years after the fiscal year for which the funds were 
originally appropriated. No provision in this title permits 
obligation or payment of funds in violation of section 1341 
of title 31, United States Code. 
SEC. 1208. NEXT GENERATION AUTOMOBILE PRIZE PRO-
GRAM. 
The Secretary of Energy shall establish a program 
to award a prize in the amount of $500,000,000 to the 
first automobile manufacturer incorporated in the United 
States to manufacture and sell in the United States 
50,000 midsized sedan automobiles which operate on gaso-
line and can travel 100 miles per gallon. 
SEC. 1209. ADVANCED BATTERY MANUFACTURING INCEN-
TIVE PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ADVANCED BATTERY.—The term ‘‘advanced 
battery’’ means an electrical storage device suitable 
for vehicle applications. 
(2) ENGINEERING
INTEGRATION
COSTS.—The 
term ‘‘engineering integration costs’’ includes the 
cost of engineering tasks relating to— 
(A) incorporation of qualifying components 
into the design of advanced batteries; and 
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(B) design of tooling and equipment and 
developing manufacturing processes and mate-
rial suppliers for production facilities that 
produce qualifying components or advanced bat-
teries. 
(b) ADVANCED BATTERY MANUFACTURING FACIL-
ITY.—The Secretary shall provide facility funding awards 
under this section to advanced battery manufacturers to 
pay not more than 30 percent of the cost of reequipping, 
expanding, or establishing a manufacturing facility in the 
United States to produce advanced batteries. 
(c) PERIOD OF AVAILABILITY.—An award under sub-
section (b) shall apply to— 
(1) facilities and equipment placed in service 
before December 30, 2020; and 
(2) engineering integration costs incurred dur-
ing the period beginning on the date of enactment 
of this Act and ending on December 30, 2020. 
(d) DIRECT LOAN PROGRAM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this title, and subject to 
the availability of appropriated funds, the Secretary 
shall carry out a program to provide a total of not 
more than $100,000,000 in loans to eligible individ-
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uals and entities (as determined by the Secretary) 
for the costs of activities described in subsection (b). 
(2) SELECTION OF ELIGIBLE PROJECTS.—The 
Secretary shall select eligible projects to receive 
loans under this subsection in cases in which, as de-
termined by the Secretary, the award recipient— 
(A) is financially viable without the receipt 
of additional Federal funding associated with 
the proposed project; 
(B) will provide sufficient information to 
the Secretary for the Secretary to ensure that 
the qualified investment is expended efficiently 
and effectively; and 
(C) has met such other criteria as may be 
established and published by the Secretary. 
(3) RATES, 
TERMS, 
AND
REPAYMENT
OF 
LOANS.—A loan provided under this subsection— 
(A) shall have an interest rate that, as of 
the date on which the loan is made, is equal to 
the cost of funds to the Department of the 
Treasury for obligations of comparable matu-
rity; 
(B) shall have a term equal to the lesser 
of— 
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percent to provide awards to covered firms or con-
sortia led by a covered firm. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated from the American En-
ergy Trust Fund such sums as are necessary to carry out 
this section for each of fiscal years 2009 through 2013. 
Æ 
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