114
(4) Coal gas and post-combustion emission clean-
up and disposal equipment, including carbon dioxide 
capture and disposal equipment. 
(5) Average per-foot drilling costs for oil and 
gas, segregated by appropriate drilling regimes, in-
cluding onshore versus offshore and depth categories. 
(6) Production of liquid fuels from nontradi-
tional feedstocks, including syngas, biomass, methane, 
and combinations thereof. 
(7) Environmental discharge per barrel of oil or 
oil-equivalent production, including reinjected waste. 
(8) Surface disturbance on both a per-well and 
per-barrel of oil or oil-equivalent production basis. 
(d) PUBLIC INPUT.—The Secretary shall consider ad-
vice from industry, universities, and other interested parties 
through seeking comments in the Federal Register and other 
means before transmitting each report under subsection (b). 
SEC. 602. FOSSIL RESEARCH AND DEVELOPMENT. 
(a) OBJECTIVES.—The Secretary shall conduct a pro-
gram of fossil research, development, demonstration, and 
commercial application, whose objective shall be to reduce 
emissions from fossil fuel use by developing technologies, in-
cluding precombustion technologies, by 2015 with the capa-
bility of—
115
(1) dramatically increasing electricity gener-
ating efficiencies of coal and natural gas; 
(2) improving combined heat and power thermal 
efficiencies; 
(3) improving fuels utilization efficiency of pro-
duction of liquid transportation fuels from coal; 
(4) achieving near-zero emissions of mercury and 
of emissions that form fine particles, smog, and acid 
rain; 
(5) reducing carbon dioxide emissions by at least 
40 percent through efficiency improvements and by 
100 percent with sequestration; and 
(6) improved reliability, efficiency, reductions of 
air pollutant emissions, and reductions in solid waste 
disposal requirements. 
(b) COAL-BASED PROJECTS.—The coal-based projects 
authorized under this section shall be consistent with the 
objective stated in subsection (a). The program shall empha-
size carbon capture and sequestration technologies and gas-
ification technologies, including gasification combined 
cycle, gasification fuel cells, gasification coproduction, hy-
brid gasification/combustion, or other technologies with the 
potential to address the capabilities described in para-
graphs (4) and (5) of subsection (a).
116
SEC. 603. OIL AND GAS RESEARCH AND DEVELOPMENT. 
The Secretary shall conduct a program of oil and gas 
research, development, demonstration, and commercial ap-
plication, whose objective shall be to advance the science and 
technology available to domestic petroleum producers, par-
ticularly independent operators, to minimize the economic 
dislocation caused by the decline of domestic supplies of oil 
and natural gas resources by focusing research on—
(1) assisting small domestic producers of oil and 
gas to develop new and improved technologies to dis-
cover and extract additional supplies; 
(2) developing technologies to extract methane 
hydrates in an environmentally sound manner; 
(3) improving the ability of the domestic indus-
try to extract hydrocarbons from known reservoirs 
and classes of reservoirs; and 
(4) reducing the cost, and improving the effi-
ciency and environmental performance, of oil and gas 
exploration and extraction activities, focusing espe-
cially on unconventional sources such as tar sands, 
heavy oil, and shale oil. 
SEC. 604. TRANSPORTATION FUELS. 
The Secretary shall conduct a program of transpor-
tation fuels research, development, demonstration, and com-
mercial application, whose objective shall be to increase the
117
price elasticity of oil supply and demand by focusing re-
search on—
(1) reducing the cost of producing transportation 
fuels from coal and natural gas; and 
(2) indirect liquefaction of coal and biomass. 
SEC. 605. FUEL CELLS. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and commer-
cial application of fuel cells for low-cost, high-efficiency, 
fuel-flexible, modular power systems. 
(b) DEMONSTRATION.—The program under this sec-
tion shall include demonstration of fuel cell proton exchange 
membrane technology for commercial, residential, and 
transportation applications, and distributed generation 
systems, utilizing improved manufacturing production and 
processes. 
SEC. 606. CARBON DIOXIDE CAPTURE RESEARCH AND DE-
VELOPMENT. 
(a) PROGRAM.—The Secretary of Energy shall support 
a 10-year program of research and development aimed at 
developing carbon dioxide capture technologies for pulver-
ized coal combustion units. The program shall focus on—
(1) developing add-on carbon dioxide capture 
technologies, such as adsorption and absorption tech-
niques and chemical processes, to remove carbon diox-
118
ide from flue gas, producing concentrated streams of 
carbon dioxide potentially amenable to sequestration; 
(2) combustion technologies that would directly 
produce concentrated streams of carbon dioxide poten-
tially amenable to sequestration; and 
(3) increasing the efficiency of the overall com-
bustion system in order to reduce the amount of car-
bon dioxide emissions released from the system per 
megawatt generated. 
(b) CARBON SEQUESTRATION.—In conjunction with 
the program under subsection (a), the Secretary shall con-
tinue pursuing a robust carbon sequestration program with 
the private sector, through regional carbon sequestration 
partnerships. 
SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are authorized 
to be appropriated to the Secretary for the purposes of car-
rying out this subtitle: 
(1) For fiscal year 2006, $583,000,000. 
(2) For fiscal year 2007, $611,000,000. 
(3) For fiscal year 2008, $626,000,000. 
(4) For fiscal year 2009, $641,000,000. 
(5) For fiscal year 2010, $657,000,000.
119
(b) ALLOCATION.—From amounts authorized under 
subsection (a), there are authorized to be appropriated for 
carrying out the program under section 606—
(1) $20,000,000 for fiscal year 2006; 
(2) $25,000,000 for fiscal year 2007; 
(3) $30,000,000 for fiscal year 2008; 
(4) $35,000,000 for fiscal year 2009; and 
(5) $40,000,000 for fiscal year 2010. 
Subtitle 
B—Ultra-Deepwater 
and 
Unconventional 
Natural 
Gas 
and Other Petroleum Resources 
SEC. 611. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this subtitle 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 
addressing the technology challenges for small producers, 
safe operations, and environmental mitigation (including 
reduction of greenhouse gas emissions and sequestration of 
carbon). 
(b) METHANE HYDRATE REPORT.—Within 6 months 
of enactment, the Secretary shall report to Congress on 
whether the activities described in the Methane Hydrates
120
Act of 2000 (114 Stat. 234 or 30 U.S.C. 1902 note) should 
be carried out under this subtitle. 
(c) PROGRAM ELEMENTS.—The program under this 
subtitle shall address the following areas, including improv-
ing safety and minimizing environmental impacts of ac-
tivities within each area: 
(1) Ultra-deepwater technology, including drill-
ing to formations in the Outer Continental Shelf to 
depths greater than 15,000 feet. 
(2) Ultra-deepwater architecture. 
(3) Unconventional natural gas and other petro-
leum resource exploration and production technology, 
including the technology challenges of small pro-
ducers. 
(d) LIMITATION
ON LOCATION
OF FIELD ACTIVI-
TIES.—Field activities under the program under this sub-
title 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
121
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. 
(e) 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). 
(f) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this subtitle, the Secretary shall 
consult regularly with the Secretary of the Interior. 
SEC. 612. ULTRA-DEEPWATER PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under section 611(a), to maximize the use of the 
ultra-deepwater natural gas and other petroleum resources 
of the United States by increasing the supply of such re-
sources, through reducing the cost and increasing the effi-
ciency of exploration for and production of such resources, 
while improving safety and minimizing environmental im-
pacts.
122
(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 may 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) PROCEDURES.—The Secretary shall es-
tablish procedures—
(i) to ensure that each board member, 
officer, or employee of the program consor-
tium who is in a decision-making capacity
123
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 sec-
tion, including those of his or her spouse or 
minor child, unless such relationships or in-
terests would be considered to be remote or 
inconsequential; and 
(ii) to require any board member, offi-
cer, or employee with a financial relation-
ship or interest 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 appli-
cant or recipient. 
(B) FAILURE TO COMPLY.—The Secretary 
may disqualify an application or revoke an 
award under this section if a board member, offi-
cer, or employee has failed to comply with proce-
dures 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.
124
(2) MEMBERS.—The program consortium may 
include corporations, trade associations, 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 180 days after 
the date of enactment of this Act, the Secretary shall 
solicit proposals from eligible consortia to perform the 
duties in subsection (c)(1), which shall be submitted 
not later than 360 days after the date of enactment 
of this Act. The Secretary shall select the program 
consortium not later than 18 months 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
125
(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 shall 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) 
SOLICITATION
OF
RECOMMENDA-
TIONS.—Before drafting an annual plan under 
this subsection, the Secretary shall solicit specific 
written recommendations from the program con-
sortium for each element to be addressed in the
126
plan, including those described in paragraph (4). 
The Secretary may request that the program 
consortium submit its recommendations in the 
form of a draft annual plan. 
(B) SUBMISSION
OF
RECOMMENDATIONS; 
OTHER COMMENT.—The Secretary shall submit 
the recommendations of the program consortium 
under subparagraph (A) to the Ultra-Deepwater 
Advisory Committee established under section 
615(a) for review, and such Advisory Committee 
shall provide to the Secretary written comments 
by a date determined by the Secretary. The Sec-
retary may also solicit comments from any other 
experts. 
(C) CONSULTATION.—The Secretary shall 
consult regularly with the program consortium 
throughout the preparation of the annual plan. 
(3) PUBLICATION.—The Secretary shall transmit 
to Congress and publish in the Federal Register the 
annual plan, along with any written comments re-
ceived 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—
127
(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). 
(5) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the Sec-
retary of the Interior, shall provide an annual report 
to Congress with the President’s budget on the esti-
mated cumulative increase in Federal royalty receipts 
(if any) resulting from the implementation of this 
subtitle. 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.—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
128
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) IN GENERAL.—The program consortium 
shall oversee the implementation of awards under 
this subsection, consistent with the annual plan 
under subsection (e), including disbursing funds 
and monitoring activities carried out under such 
awards for compliance with the terms and condi-
tions of the awards. 
(B) EFFECT.—Nothing in subparagraph 
(A) shall limit the authority or responsibility of 
the Secretary to oversee awards, or limit the au-
129
thority of the Secretary to review or revoke 
awards. 
(C) PROVISION OF INFORMATION.—The Sec-
retary shall provide to the program consortium 
the information necessary for the program con-
sortium to carry out its responsibilities under 
this paragraph. 
(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 pro-
gram. This compensation may include a management 
fee consistent with Department of Energy contracting 
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 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 subtitle. The auditor shall trans-
130
mit a report annually to the Secretary, who shall transmit 
the report to Congress, along with a plan to remedy any 
deficiencies cited in the report. 
SEC. 613. UNCONVENTIONAL NATURAL GAS AND OTHER PE-
TROLEUM RESOURCES PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out ac-
tivities under section 611(b)(3), to maximize the use of the 
onshore unconventional natural gas and other petroleum re-
sources of the United States, by increasing the supply of 
such resources, through 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 to research consortia 
made through an open, competitive process. As a con-
dition of award of funds, qualified research consortia 
shall—
(A) demonstrate capability and experience 
in unconventional onshore natural gas or other 
petroleum research and development; 
(B) provide a research plan that dem-
onstrates how additional natural gas or oil pro-
duction will be achieved; and
131
(C) at the request of the Secretary, provide 
technical advice to the Secretary for the purposes 
of developing the annual plan required under 
subsection (e). 
(2) PRODUCTION
POTENTIAL.—The Secretary 
shall seek to ensure that the number and types of 
awards made under this subsection have reasonable 
potential to lead to additional oil and natural gas 
production on Federal lands. 
(3) SCHEDULE.—To carry out this subsection, 
not later than 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals from 
research consortia, which shall be submitted not later 
than 360 days after the date of enactment of this Act. 
The Secretary shall select the first group of research 
consortia to receive awards under this subsection not 
later than 18 months after such date of enactment. 
(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 subtitle. 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.
132
(d) FOCUS AREAS FOR AWARDS.—
(1) 
UNCONVENTIONAL
RESOURCES.—Awards 
from allocations under section 619(d)(2) shall focus 
on areas including advanced coalbed methane, deep 
drilling, natural gas production from tight sands, 
natural gas production from gas shales, stranded gas, 
innovative exploration and production techniques, en-
hanced recovery techniques, and environmental miti-
gation of unconventional natural gas and other petro-
leum resources exploration and production. 
(2) SMALL
PRODUCERS.—Awards from alloca-
tions under section 619(d)(3) shall be made to con-
sortia consisting of small producers or organized pri-
marily for the benefit of small producers, and shall 
focus on areas including complex geology involving 
rapid changes in the type and quality of the oil and 
gas reservoirs across the reservoir; low reservoir pres-
sure; unconventional natural gas reservoirs in coal-
beds, deep reservoirs, tight sands, or shales; and un-
conventional oil reservoirs in tar sands and oil shales. 
(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).
133
(2) DEVELOPMENT.—
(A) WRITTEN
RECOMMENDATIONS.—Before 
drafting an annual plan under this subsection, 
the Secretary shall solicit specific written rec-
ommendations from the research consortia receiv-
ing awards under subsection (b) and the Uncon-
ventional Resources Technology Advisory Com-
mittee for each element to be addressed in the 
plan, including those described in subparagraph 
(D). 
(B) CONSULTATION.—The Secretary shall 
consult regularly with the research consortia 
throughout the preparation of the annual plan. 
(C) PUBLICATION.—The Secretary shall 
transmit to Congress and publish in the Federal 
Register the annual plan, along with any writ-
ten comments received under subparagraph (A). 
(D) CONTENTS.—The annual plan shall de-
scribe the ongoing and prospective activities 
under this section and shall include a list of any 
solicitations for awards that the Secretary plans 
to issue to carry out research, development, dem-
onstration, or commercial application activities, 
including the topics for such work, who would be
134
eligible to apply, selection criteria, and the dura-
tion of awards. 
(3) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the Sec-
retary of the Interior, shall provide an annual report 
to Congress with the President’s budget on the esti-
mated cumulative increase in Federal royalty receipts 
(if any) resulting from the implementation of this 
subtitle. 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) 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. 614. 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.—Subject to the limitation in section 611(c), a 
demonstration project under this subtitle relating to an
135
ultra-deepwater technology or an ultra-deepwater architec-
ture 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.—2.5 percent of the 
amount of each award made under this subtitle shall be des-
ignated for technology transfer and outreach activities 
under this subtitle. 
(e) COST SHARING REDUCTION FOR INDEPENDENT 
PRODUCERS.—In applying the cost sharing requirements 
under [section ll] to an award under this subtitle the 
Secretary may reduce or eliminate the non-Federal require-
ment if the Secretary determines that the reduction is nec-
essary and appropriate considering the technological risks 
involved in the project. 
SEC. 615. 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.
136
(2) 
MEMBERSHIP.—The 
advisory 
committee 
under this subsection shall be composed of members 
appointed by the Secretary 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 sub-
title related to ultra-deepwater natural gas and 
other petroleum resources; and 
(B) carry out section 612(e)(2)(B). 
(4) COMPENSATION.—A member of the advisory 
committee under this subsection shall serve without
137
compensation but shall receive travel expenses in ac-
cordance 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 Act, the Secretary 
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 including—
(A) a majority of members who are employ-
ees or representatives of independent producers of 
natural gas and other petroleum, including 
small producers; 
(B) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production; 
(C) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration
138
and production, including interests in environ-
mental protection and safe operations; and 
(D) 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 sub-
title 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 in ac-
cordance 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 particular consortia or other entities, or for spe-
cific projects. 
SEC. 616. LIMITS ON PARTICIPATION. 
An entity shall be eligible to receive an award under 
this subtitle only if the Secretary finds—
(1) that the entity’s participation in the pro-
gram under this subtitle would be in the economic in-
terest of the United States; and 
(2) that either—
139
(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 that 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 subtitle; 
(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. 
SEC. 617. SUNSET. 
The authority provided by this subtitle shall terminate 
on September 30, 2015. 
SEC. 618. DEFINITIONS. 
In this subtitle:
140
(1) DEEPWATER.—The term ‘‘deepwater’’ means 
a water depth that is greater than 200 but less than 
1,500 meters. 
(2) INDEPENDENT PRODUCER OF OIL OR GAS.—
(A) IN GENERAL.—The term ‘‘independent 
producer of oil or gas’’ means any person that 
produces oil or gas other than a person to whom 
subsection (c) of section 613A of the Internal 
Revenue Code of 1986 does not apply by reason 
of paragraph (2) (relating to certain retailers) or 
paragraph (4) (relating to certain refiners) of 
section 613A(d) of such Code. 
(B) RULES FOR APPLYING PARAGRAPHS (2) 
AND (4) OF SECTION 613A(d).—For purposes of 
subparagraph (A), paragraphs (2) and (4) of 
section 613A(d) of the Internal Revenue Code of 
1986 shall be applied by substituting ‘‘calendar 
year’’ for ‘‘taxable year’’ each place it appears in 
such paragraphs. 
(3) PROGRAM
CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 612(d). 
(4) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
141
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(5) SMALL PRODUCER.—The term ‘‘small pro-
ducer’’ means an entity organized under the laws of 
the United States with production levels of less than 
1,000 barrels per day of oil equivalent. 
(6) ULTRA-DEEPWATER.—The term ‘‘ultra-deep-
water’’ means a water depth that is equal to or great-
er than 1,500 meters. 
(7) 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. 
(8) ULTRA-DEEPWATER TECHNOLOGY.—The term 
‘‘ultra-deepwater technology’’ means a discrete tech-
nology that is specially suited to address 1 or more 
challenges associated with the exploration for, or pro-
duction of, natural gas or other petroleum resources 
located at ultra-deepwater depths. 
(9) UNCONVENTIONAL NATURAL GAS AND OTHER 
PETROLEUM RESOURCE.—The term ‘‘unconventional 
natural gas and other petroleum resource’’ means nat-
ural gas and other petroleum resource located onshore
142
in an economically inaccessible geological formation, 
including resources of small producers. 
SEC. 619. FUNDING. 
(a) IN GENERAL.—
(1) OIL AND GAS LEASE INCOME.—For each of 
fiscal years 2006 through 2015, from any Federal 
royalties, rents, and bonuses derived from Federal on-
shore 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 
subsection (c), $150,000,000 shall be deposited into 
the Ultra-Deepwater and Unconventional Natural 
Gas and Other Petroleum Research Fund (in this sec-
tion referred to as the Fund). For purposes of this sec-
tion, the term ‘‘royalties’’ excludes proceeds 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)). 
(2) AUTHORIZATION
OF
APPROPRIATIONS.—In 
addition to amounts described in paragraph (1), there 
are authorized to be appropriated to the Secretary, to 
be deposited in the Fund, $50,000,000 for each of the
143
fiscal years 2006 through 2015, to remain available 
until expended. 
(b) OBLIGATIONAL AUTHORITY.—Monies in the Fund 
shall be available to the Secretary for obligation under this 
subtitle without fiscal year limitation, to remain available 
until expended. 
(c) PRIOR DISTRIBUTIONS.—The distributions de-
scribed in subsection (a) are those required by law—
(1) to States and to the Reclamation Fund under 
the Mineral Leasing Act (30 U.S.C. 191(a)); and 
(2) to other funds receiving monies from Federal 
oil and gas leasing programs, including—
(A) any recipients pursuant to section 8(g) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(g)); 
(B) 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)); 
(C) the Historic Preservation Fund, pursu-
ant to section 108 of the National Historic Pres-
ervation Act (16 U.S.C. 470h); and 
(D) the Secure Energy Reinvestment Fund.
144
(d) ALLOCATION.—Amounts obligated from the Fund 
under this section in each fiscal year shall be allocated as 
follows: 
(1) 50 percent shall be for activities under sec-
tion 612. 
(2) 35 percent shall be for activities under sec-
tion 613(d)(1). 
(3) 10 percent shall be for activities under sec-
tion 613(d)(2). 
(4) 5 percent shall be for research under section 
611(d). 
(e) 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 Petroleum Research Fund’’. 
TITLE VII—HYDROGEN 
SEC. 701. DEFINITIONS. 
In this title: 
(1) ADVISORY COMMITTEE.—The term ‘‘Advisory 
Committee’’ means the Hydrogen Technical and Fuel 
Cell Advisory Committee established under section 
705. 
(2) FUEL CELL.—The term ‘‘fuel cell’’ means a 
device that directly converts the chemical energy of a 
fuel and an oxidant into electricity by an electro-
145
chemical process taking place at separate electrodes in 
the device. 
(3) INFRASTRUCTURE.—The term ‘‘infrastruc-
ture’’ means the equipment, systems, or facilities used 
to produce, distribute, deliver, or store hydrogen. 
(4) LIGHT
DUTY
VEHICLE.—The term ‘‘light 
duty vehicle’’ means a car or truck classified by the 
Department of Transportation as a Class I or IIA ve-
hicle. 
SEC. 702. PLAN. 
Not later than 6 months after the date of enactment 
of this Act, the Secretary shall transmit to Congress a co-
ordinated plan for the programs described in this title and 
any other programs of the Department that are directly re-
lated to fuel cells or hydrogen. The plan shall describe, at 
a minimum—
(1) the agenda for the next 5 years for the pro-
grams authorized under this title, including the agen-
da for each activity enumerated in section 703(a); 
(2) the types of entities that will carry out the 
activities under this title and what role each entity 
is expected to play; 
(3) the milestones that will be used to evaluate 
the programs for the next 5 years;
146
(4) the most significant technical and nontech-
nical hurdles that stand in the way of achieving the 
goals described in section 703(b), and how the pro-
grams will address those hurdles; and 
(5) the policy assumptions that are implicit in 
the plan, including any assumptions that would affect 
the sources of hydrogen or the marketability of hydro-
gen-related products. 
SEC. 703. PROGRAMS. 
(a) ACTIVITIES.—The Secretary, in partnership with 
the private sector, shall conduct programs to address—
(1) production of hydrogen from diverse energy 
sources, including—
(A) fossil fuels, which may include carbon 
capture and sequestration; 
(B) hydrogen-carrier fuels (including eth-
anol and methanol); 
(C) renewable energy resources, including 
biomass; and 
(D) nuclear energy; 
(2) use of hydrogen for commercial, industrial, 
and residential electric power generation; 
(3) safe delivery of hydrogen or hydrogen-carrier 
fuels, including—
147
(A) transmission by pipeline and other dis-
tribution methods; and 
(B) convenient and economic refueling of 
vehicles either at central refueling stations or 
through distributed on-site generation; 
(4) advanced vehicle technologies, including—
(A) engine and emission control systems; 
(B) energy storage, electric propulsion, and 
hybrid systems; 
(C) automotive materials; and 
(D) other advanced vehicle technologies; 
(5) storage of hydrogen or hydrogen-carrier fuels, 
including development of materials for safe and eco-
nomic storage in gaseous, liquid, or solid form at re-
fueling facilities and onboard vehicles; 
(6) development of safe, durable, affordable, and 
efficient fuel cells, including fuel-flexible fuel cell 
power systems, improved manufacturing processes, 
high-temperature membranes, cost-effective fuel proc-
essing for natural gas, fuel cell stack and system reli-
ability, low temperature operation, and cold start ca-
pability; 
(7) development, after consultation with the pri-
vate sector, of necessary codes and standards (includ-
ing international codes and standards and voluntary
148
consensus standards adopted in accordance with OMB 
Circular A–119) and safety practices for the produc-
tion, distribution, storage, and use of hydrogen, hy-
drogen-carrier fuels, and related products; and 
(8) a public education program to develop im-
proved knowledge and acceptability of hydrogen-based 
systems. 
(b) PROGRAM GOALS.—
(1) VEHICLES.—For vehicles, the goals of the 
program are—
(A) to enable a commitment by automakers 
no later than year 2015 to offer safe, affordable, 
and technically viable hydrogen fuel cell vehicles 
in the mass consumer market; and 
(B) to enable production, delivery, and ac-
ceptance by consumers of model year 2020 hy-
drogen fuel cell and other hydrogen-powered ve-
hicles that will have—
(i) a range of at least 300 miles; 
(ii) improved performance and ease of 
driving; 
(iii) safety and performance com-
parable to vehicle technologies in the mar-
ket; and
149
(iv) when compared to light duty vehi-
cles in model year 2003—
(I) fuel economy that is substan-
tially higher; 
(II) substantially lower emissions 
of air pollutants; and 
(III) equivalent or improved vehi-
cle fuel system crash integrity and oc-
cupant protection. 
(2) HYDROGEN
ENERGY
AND
ENERGY
INFRA-
STRUCTURE.—For hydrogen energy and energy infra-
structure, the goals of the program are to enable a 
commitment not later than 2015 that will lead to in-
frastructure by 2020 that will provide—
(A) safe and convenient refueling; 
(B) improved overall efficiency; 
(C) widespread availability of hydrogen 
from domestic energy sources through—
(i) production, with consideration of 
emissions levels; 
(ii) delivery, including transmission 
by pipeline and other distribution methods 
for hydrogen; and 
(iii) storage, including storage in sur-
face transportation vehicles;
150
(D) hydrogen for fuel cells, internal combus-
tion engines, and other energy conversion devices 
for portable, stationary, and transportation ap-
plications; and 
(E) other technologies consistent with the 
Department’s plan. 
(3) FUEL CELLS.—The goals for fuel cells and 
their portable, stationary, and transportation appli-
cations are to enable—
(A) safe, economical, and environmentally 
sound hydrogen fuel cells; 
(B) fuel cells for light duty and other vehi-
cles; and 
(C) other technologies consistent with the 
Department’s plan. 
(c) DEMONSTRATION.—In carrying out the programs 
under this section, the Secretary shall fund a limited num-
ber of demonstration projects, consistent with a determina-
tion of the maturity, cost-effectiveness, and environmental 
impacts of technologies supporting each project. In selecting 
projects under this subsection, the Secretary shall, to the 
extent practicable and in the public interest, select projects 
that—
(1) involve using hydrogen and related products 
at existing facilities or installations, such as existing
151
office buildings, military bases, vehicle fleet centers, 
transit bus authorities, or units of the National Park 
System; 
(2) depend on reliable power from hydrogen to 
carry out essential activities; 
(3) lead to the replication of hydrogen tech-
nologies and draw such technologies into the market-
place; 
(4) include vehicle, portable, and stationary 
demonstrations of fuel cell and hydrogen-based energy 
technologies; 
(5) address the interdependency of demand for 
hydrogen fuel cell applications and hydrogen fuel in-
frastructure; 
(6) raise awareness of hydrogen technology 
among the public; 
(7) facilitate identification of an optimum tech-
nology among competing alternatives; 
(8) address distributed generation using renew-
able sources; and 
(9) address applications specific to rural or re-
mote locations, including isolated villages and is-
lands, the National Park System, and tribal entities. 
The Secretary shall give preference to projects which address 
multiple elements contained in paragraphs (1) through (9).
152
(d) DEPLOYMENT.—In carrying out the programs 
under this section, the Secretary shall, in partnership with 
the private sector, conduct activities to facilitate the deploy-
ment of hydrogen energy and energy infrastructure, fuel 
cells, and advanced vehicle technologies. 
(e) FUNDING.—
(1) IN GENERAL.—The Secretary shall carry out 
the programs under this section using a competitive, 
merit-based review process and consistent with the 
generally applicable Federal laws and regulations 
governing awards of financial assistance, contracts, 
or other agreements. 
(2) RESEARCH CENTERS.—Activities under this 
section may be carried out by funding nationally rec-
ognized university-based or Federal laboratory re-
search centers. 
(f) DISCLOSURE.—Section 623 of the Energy Policy 
Act of 1992 (42 U.S.C. 13293) relating to the protection 
of information shall apply to projects carried out through 
grants, cooperative agreements, or contracts under this title. 
SEC. 704. INTERAGENCY TASK FORCE. 
(a) ESTABLISHMENT.—Not later than 120 days after 
the date of enactment of this Act, the President shall estab-
lish an interagency task force chaired by the Secretary with 
representatives from each of the following:
153
(1) The Office of Science and Technology Policy 
within the Executive Office of the President. 
(2) The Department of Transportation. 
(3) The Department of Defense. 
(4) The Department of Commerce (including the 
National Institute of Standards and Technology). 
(5) The Department of State. 
(6) The Environmental Protection Agency. 
(7) The National Aeronautics and Space Admin-
istration. 
(8) Other Federal agencies as the Secretary de-
termines appropriate. 
(b) DUTIES.—
(1) PLANNING.—The interagency task force shall 
work toward—
(A) a safe, economical, and environmentally 
sound fuel infrastructure for hydrogen and hy-
drogen-carrier fuels, including an infrastructure 
that supports buses and other fleet transpor-
tation; 
(B) fuel cells in government and other ap-
plications, including portable, stationary, and 
transportation applications;
154
(C) distributed power generation, including 
the generation of combined heat, power, and 
clean fuels including hydrogen; 
(D) uniform hydrogen codes, standards, and 
safety protocols; and 
(E) vehicle hydrogen fuel system integrity 
safety performance. 
(2) ACTIVITIES.—The interagency task force may 
organize workshops and conferences, may issue publi-
cations, and may create databases to carry out its du-
ties. The interagency task force shall—
(A) foster the exchange of generic, non-
proprietary information and technology among 
industry, academia, and government; 
(B) develop and maintain an inventory and 
assessment of hydrogen, fuel cells, and other ad-
vanced technologies, including the commercial 
capability of each technology for the economic 
and environmentally safe production, distribu-
tion, delivery, storage, and use of hydrogen; 
(C) integrate technical and other informa-
tion made available as a result of the programs 
and activities under this title; 
(D) promote the marketplace introduction of 
infrastructure for hydrogen fuel vehicles; and
155
(E) conduct an education program to pro-
vide hydrogen and fuel cell information to poten-
tial end-users. 
(c) AGENCY COOPERATION.—The heads of all agencies, 
including those whose agencies are not represented on the 
interagency task force, shall cooperate with and furnish in-
formation to the interagency task force, the Advisory Com-
mittee, and the Department. 
SEC. 705. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Hydrogen Technical and 
Fuel Cell Advisory Committee is established to advise the 
Secretary on the programs and activities under this title. 
(b) MEMBERSHIP.—
(1) MEMBERS.—The Advisory Committee shall 
be comprised of not fewer than 12 nor more than 25 
members. The members shall be appointed by the Sec-
retary to represent domestic industry, academia, pro-
fessional societies, government agencies, Federal lab-
oratories, previous advisory panels, and financial, en-
vironmental, and other appropriate organizations 
based on the Department’s assessment of the technical 
and other qualifications of committee members and 
the needs of the Advisory Committee. 
(2) TERMS.—The term of a member of the Advi-
sory Committee shall not be more than 3 years. The
156
Secretary may appoint members of the Advisory 
Committee in a manner that allows the terms of the 
members serving at any time to expire at spaced in-
tervals so as to ensure continuity in the functioning 
of the Advisory Committee. A member of the Advisory 
Committee whose term is expiring may be re-
appointed. 
(3) CHAIRPERSON.—The Advisory Committee 
shall have a chairperson, who is elected by the mem-
bers from among their number. 
(c) REVIEW.—The Advisory Committee shall review 
and make recommendations to the Secretary on—
(1) the implementation of programs and activi-
ties under this title; 
(2) the safety, economical, and environmental 
consequences of technologies for the production, dis-
tribution, delivery, storage, or use of hydrogen energy 
and fuel cells; and 
(3) the plan under section 702. 
(d) RESPONSE.—
(1) CONSIDERATION
OF
RECOMMENDATIONS.—
The Secretary shall consider, but need not adopt, any 
recommendations of the Advisory Committee under 
subsection (c).
157
(2) BIENNIAL
REPORT.—The Secretary shall 
transmit a biennial report to Congress describing any 
recommendations made by the Advisory Committee 
since the previous report. The report shall include a 
description of how the Secretary has implemented or 
plans to implement the recommendations, or an ex-
planation of the reasons that a recommendation will 
not be implemented. The report shall be transmitted 
along with the President’s budget proposal. 
(e) SUPPORT.—The Secretary shall provide resources 
necessary in the judgment of the Secretary for the Advisory 
Committee to carry out its responsibilities under this title. 
SEC. 706. EXTERNAL REVIEW. 
(a) PLAN.—The Secretary shall enter into an arrange-
ment with the National Academy of Sciences to review the 
plan prepared under section 702, which shall be completed 
not later than 6 months after the Academy receives the plan. 
Not later than 45 days after receiving the review, the Sec-
retary shall transmit the review to Congress along with a 
plan to implement the review’s recommendations or an ex-
planation of the reasons that a recommendation will not 
be implemented. 
(b) ADDITIONAL REVIEW.—The Secretary shall enter 
into an arrangement with the National Academy of 
Sciences under which the Academy will review the pro-
158
grams under section 703 during the fourth year following 
the date of enactment of this Act. The Academy’s review 
shall include the research priorities and technical mile-
stones, and evaluate the progress toward achieving them. 
The review shall be completed not later than 5 years after 
the date of enactment of this Act. Not later than 45 days 
after receiving the review, the Secretary shall transmit the 
review to Congress along with a plan to implement the re-
view’s recommendations or an explanation for the reasons 
that a recommendation will not be implemented. 
SEC. 707. MISCELLANEOUS PROVISIONS. 
(a) REPRESENTATION.—The Secretary may represent 
the United States interests with respect to activities and 
programs under this title, in coordination with the Depart-
ment of Transportation, the National Institute of Stand-
ards and Technology, and other relevant Federal agencies, 
before governments and nongovernmental organizations in-
cluding—
(1) other Federal, State, regional, and local gov-
ernments and their representatives; 
(2) industry and its representatives, including 
members of the energy and transportation industries; 
and
159
(3) in consultation with the Department of 
State, foreign governments and their representatives 
including international organizations. 
(b) REGULATORY AUTHORITY.—Nothing in this title 
shall be construed to alter the regulatory authority of the 
Department. 
SEC. 708. SAVINGS CLAUSE. 
Nothing in this title shall be construed to affect the 
authority of the Secretary of Transportation that may exist 
prior to the date of enactment of this Act with respect to—
(1) research into, and regulation of, hydrogen-
powered vehicles fuel systems integrity, standards, 
and safety under subtitle VI of title 49, United States 
Code; 
(2) regulation of hazardous materials transpor-
tation under chapter 51 of title 49, United States 
Code; 
(3) regulation of pipeline safety under chapter 
601 of title 49, United States Code; 
(4) encouragement and promotion of research, 
development, and deployment activities relating to 
advanced vehicle technologies under section 5506 of 
title 49, United States Code; 
(5) regulation of motor vehicle safety under 
chapter 301 of title 49, United States Code;