Sec. 105. Study of ethanol-blended gasoline with greater levels of ethanol. 
Sec. 106. Study of the adequacy of railroad transportation of domestically-pro-
duced renewable fuel. 
Sec. 107. Standard specifications for biodiesel. 
Sec. 108. Grants for cellulosic ethanol production. 
Sec. 109. Consumer education campaign relating to flexible-fuel vehicles. 
Sec. 110. Review of new renewable fuels or new renewable fuel additives. 
Sec. 111. Domestic manufacturing conversion grant program. 
Sec. 112. Cellulosic ethanol and biofuels research. 
Sec. 113. Federal fleet fueling centers. 
Sec. 114. Study of impact of increased renewable fuel use. 
Sec. 115. Grants for renewable fuel production research and development in 
certain States. 
Sec. 116. Study of effect of oil prices. 
Sec. 117. Biodiesel as alternative fuel for CAFE purposes. 
TITLE II—UNITED STATES-ISRAEL ENERGY COOPERATION 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Grant program. 
Sec. 204. International Energy Advisory Board. 
Sec. 205. Definitions. 
Sec. 206. Termination. 
Sec. 207. Authorization of appropriations. 
Sec. 208. Constitutional authority. 
TITLE I—RENEWABLE FUEL 
INFRASTRUCTURE 
SEC. 101. RENEWABLE FUEL INFRASTRUCTURE DEVELOP-
MENT. 
(a) DEFINITION.—For purposes of this Act— 
(1) the term ‘‘renewable fuel’’ means E85 
biofuel, or B20; 
(2) the term ‘‘biofuel’’ means fuel produced en-
tirely from biological material and determined by the 
Department of Energy and the Environmental Pro-
tection Agency to be commercially viable; 
(3) the term ‘‘B20’’ means a mixture of bio-
diesel and diesel fuel meeting the standard estab-
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lished by the American Society for Testing and Ma-
terials or under section 211(u) of the Clean Air Act 
for fuel containing 20 percent biodiesel; 
(4) the term ‘‘E85’’ means a fuel blend con-
taining 85 percent denatured ethanol and 15 percent 
gasoline by volume; 
(5) the term ‘‘flexible-fuel vehicle’’ means any 
motor vehicle warranted by the manufacturer of the 
vehicle as capable of operating on gasoline or diesel 
fuel and on— 
(A) E85; or 
(B) B20; and 
(6) the term ‘‘motor vehicle’’ means, as defined 
in regulations promulgated by the Administrator of 
the Environmental Protection Agency that are in ef-
fect on the date of enactment of this Act— 
(A) a light-duty truck; 
(B) a light-duty vehicle; or 
(C) medium-duty passenger vehicle, 
that is designed to be propelled by gasoline or diesel 
fuel. 
(b) INFRASTRUCTURE DEVELOPMENT GRANTS.— 
The Secretary of Energy shall establish a program for 
making grants for providing assistance to retail and 
wholesale motor fuel dealers or other entities for the in-
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stallation, replacement, or conversion of motor fuel storage 
and dispensing infrastructure to be used exclusively to 
store and dispense renewable fuel. Such infrastructure 
may include equipment used in the blending, distribution, 
and transport of such fuels. 
(c) RETAIL TECHNICAL AND MARKETING ASSIST-
ANCE.—The Secretary of Energy shall enter into contracts 
with entities with demonstrated experience in assisting re-
tail fueling stations in installing refueling systems and 
marketing renewable fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants 
under this section. Such assistance shall include— 
(1) technical advice for compliance with applica-
ble Federal and State environmental requirements; 
(2) help in identifying supply sources and se-
curing long-term contracts; and 
(3) provision of public outreach, education, and 
labeling materials. 
(d) ALLOCATION.—The Secretary of Energy may re-
serve funds appropriated for carrying out this section to 
support renewable fuels infrastructure development 
projects with a cost of greater than $1,000,000, that are 
of national significance. The Secretary shall reserve funds 
appropriated for the renewable fuels infrastructure devel-
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opment grant program for technical and marketing assist-
ance described in subsection (c). 
(e) SELECTION
CRITERIA.—Not later than 12 
months after the date of enactment of this Act, the Sec-
retary shall establish criteria for evaluating applications 
for grants under this section that will maximize the avail-
ability and use of renewable fuel, and that will ensure that 
renewable fuel is available across the country. Such cri-
teria shall provide for— 
(1) consideration of the public demand for each 
renewable fuel in a particular geographic area based 
on State registration records showing the number of 
flexible-fuel vehicles; 
(2) consideration of the opportunity to create or 
expand corridors of renewable fuel stations along 
interstate or State highways; 
(3) consideration of the experience of each ap-
plicant with previous, similar projects; 
(4) consideration of population, number of flexi-
ble-fuel vehicles, number of retail fuel outlets, and 
saturation of flexible-fuel vehicles; and 
(5) priority consideration to applications that— 
(A) are most likely to maximize displace-
ment of petroleum consumption, measured as a 
total quantity and a percentage; 
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(B) are best able to incorporate existing 
infrastructure while maximizing, to the extent 
practicable, the use of renewable fuels; and 
(C) demonstrate the greatest commitment 
on the part of the applicant to ensure funding 
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this sec-
tion is completed. 
(f) COMBINED APPLICATIONS.—States and local gov-
ernment entities and nonprofit entities may apply for as-
sistance under this section on behalf of a group of retailers 
within a certain geographic area, or to carry out regional 
or multistate deployment projects. Any such application 
shall certify the availability and details of a program to 
match the Federal grant as required under subsection (g) 
and list the retail locations that would receive the funds. 
(g) LIMITATIONS.—Assistance provided under this 
section shall not exceed— 
(1) 33 percent of the estimated cost of the in-
stallation, replacement, or conversion of motor fuel 
storage and dispensing infrastructure; or 
(2) $180,000 for a combination of equipment at 
any one retail outlet location. 
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franchisee (including any area in which a name 
or logo of a franchisor or any other entity ap-
pears); 
‘‘(E) purchasing renewable fuel from 
sources other than the franchisor if the 
franchisor does not offer its own renewable fuel 
for sale by the franchisee; 
‘‘(F) listing renewable fuel availability or 
prices, including on service station signs, fuel 
dispensers, or light poles; or 
‘‘(G) allowing for payment of renewable 
fuel with a credit card, 
so long as such activities described in subparagraphs 
(A) through (G) do not constitute mislabeling, mis-
branding, willful adulteration, or other trademark 
violations by the franchisee. 
‘‘(2) EFFECT OF PROVISION.—Nothing in this 
section shall be construed to preclude a franchisor 
from requiring the franchisee to obtain reasonable 
indemnification and insurance policies. 
‘‘(c) EXCEPTION TO 3-GRADE REQUIREMENT.—No 
franchise-related document that requires that 3 grades of 
gasoline be sold by the applicable franchisee shall prevent 
the franchisee from selling an renewable fuel in lieu of 
1, and only 1, grade of gasoline.’’. 
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(b) ENFORCEMENT.—Section 105 of the Petroleum 
Marketing Practices Act (15 U.S.C. 2805) is amended by 
striking ‘‘102 or 103’’ each place it appears and inserting 
‘‘102, 103, or 107’’. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 101(13) of the Pe-
troleum Marketing Practices Act (15 U.S.C. 
2801(13)) is amended by aligning the margin of 
subparagraph (C) with subparagraph (B). 
(2) TABLE OF CONTENTS.—The table of con-
tents of the Petroleum Marketing Practices Act (15 
U.S.C. 2801 note) is amended— 
(A) by inserting after the item relating to 
section 106 the following: 
‘‘Sec. 107. Prohibition on restriction of installation of renewable fuel pumps.’’; 
and 
(B) by striking the item relating to section 
202 and inserting the following: 
‘‘Sec. 202. Automotive fuel rating testing and disclosure requirements.’’. 
SEC. 103. RENEWABLE FUEL DISPENSER REQUIREMENTS. 
(a) MARKET PENETRATION REPORTS.—The Sec-
retary of Energy, in consultation with the Secretary of 
Transportation, shall determine and report to Congress 
annually on the market penetration for flexible-fuel vehi-
cles in use within geographic regions to be established by 
the Secretary of Energy. 
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(b) DISPENSER
FEASIBILITY
STUDY.—Not later 
than 24 months after the date of enactment of this Act, 
the Secretary of Energy, in consultation with the Depart-
ment of Transportation, shall report to the Congress on 
the feasibility of requiring motor fuel retailers to install 
E–85 compatible dispensers and related systems at retail 
fuel facilities in regions where flexible-fuel vehicle market 
penetration has reached 15 percent of motor vehicles. In 
conducting such study, the Secretary shall consider and 
report on the following factors: 
(1) The commercial availability of E–85 fuel 
and the number of competing E–85 wholesale sup-
pliers in a given region. 
(2) The level of financial assistance provided on 
an annual basis by the Federal Government, State 
governments, and nonprofit entities for the installa-
tion of E–85 compatible infrastructure. 
(3) The number of retailers whose retail loca-
tions are unable to support more than 2 under-
ground storage tank dispensers. 
(4) The expense incurred by retailers in the in-
stallation and sale of E–85 compatible dispensers 
and related systems and any potential effects on the 
price of motor vehicle fuel. 
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SEC. 104. PIPELINE FEASIBILITY STUDY. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall con-
duct a study of the feasibility of the construction of dedi-
cated ethanol pipelines. 
(b) FACTORS.—In conducting the study, the Sec-
retary shall consider— 
(1) the quantity of ethanol production that 
would make dedicated pipelines economically viable; 
(2) existing or potential barriers to dedicated 
ethanol pipelines, including technical, siting, financ-
ing, and regulatory barriers; 
(3) market risk (including throughput risk) and 
means of mitigating the risk; 
(4) regulatory, financing, and siting options 
that would mitigate risk in those areas and help en-
sure the construction of 1 or more dedicated ethanol 
pipelines; 
(5) financial incentives that may be necessary 
for the construction of dedicated ethanol pipelines, 
including the return on equity that sponsors of the 
initial dedicated ethanol pipelines will require to in-
vest in the pipelines; 
(6) technical factors that may compromise the 
safe transportation of ethanol in pipelines, identi-
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fying remedial and preventative measures to ensure 
pipeline integrity; and 
(7) such other factors as the Secretary con-
siders appropriate. 
(c) REPORT.—Not later than 15 months after the 
date of enactment of this Act, the Secretary shall submit 
to Congress a report describing the results of the study 
conducted under this section. 
SEC. 105. STUDY OF ETHANOL-BLENDED GASOLINE WITH 
GREATER LEVELS OF ETHANOL. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency, in cooperation with the Sec-
retary of Energy and the Secretary of Transportation, and 
after providing notice and an opportunity for public com-
ment, shall conduct a study of the feasibility of widespread 
utilization in the United States of ethanol blended gasoline 
with levels of ethanol greater than 10 percent. 
(b) STUDY.—The study under subsection (a) shall in-
clude— 
(1) a review of production and infrastructure 
constraints on increasing the consumption of eth-
anol; 
(2) an evaluation of the economic, market, and 
energy impacts of State and regional differences in 
ethanol blends; 
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(3) an evaluation of the economic, market, and 
energy impacts on gasoline retailers and consumers 
of separate and distinctly labeled fuel storage facili-
ties and dispensers; 
(4) an evaluation of the environmental impacts 
of mid-level ethanol blends on evaporative and ex-
haust emissions from on-road, off-road and marine 
engines, recreational boats, vehicles, and equipment; 
(5) an evaluation of the impacts of mid-level 
ethanol blends on the operation, durability, and per-
formance of on-road, off-road, and marine engines, 
recreational boats, vehicles, and equipment; and 
(6) an evaluation of the safety impacts of mid- 
level ethanol blends on consumers that own and op-
erate off-road and marine engines, recreational 
boats, vehicles, or equipment. 
(c) REPORT.—Not later than 24 months after the 
date of enactment of this Act, the Administrator shall sub-
mit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Environ-
ment and Public Works of the Senate a report describing 
the results of the study conducted under this section. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
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supplies of domestically-produced renewable fuel 
in any area of the United States; and 
(H) any recommendations for any addi-
tional legal authorities for Federal agencies to 
ensure the reliable railroad transportation of 
adequate supplies of domestically-produced re-
newable fuel at reasonable prices. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the 
Senate and the Committee on Energy and Commerce of 
the House of Representatives a report that describes the 
results of the study conducted under subsection (a). 
SEC. 107. STANDARD SPECIFICATIONS FOR BIODIESEL. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by redesignating subsection (s) as subsection 
(t), redesignating subsection (r) (relating to conversion as-
sistance for cellulosic biomass, waste-derived ethanol, ap-
proved renewable fuels) as subsection (s) and by adding 
the following new subsection at the end thereof: 
‘‘(u) STANDARD SPECIFICATIONS FOR BIODIESEL.— 
Unless the American Society for Testing and Materials 
has adopted a standard for diesel fuel containing 20 per-
cent biodiesel, not later than 1 year after the date of en-
actment of this subsection, the Administrator shall initiate 
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a rulemaking establishing a series of uniform per gallon 
fuel standards for categories of fuels that contain bio-
diesel, including one standard for fuel containing 20 per-
cent biodiesel, and designate an identification number for 
fuel meeting each standard in each such category so that 
vehicle manufacturers are able to design engines to use 
fuel meeting one or more of such standards. The Adminis-
trator shall finalize the standards under this subsection 
18 months after the date of the enactment of this sub-
section.’’. 
SEC. 108. GRANTS FOR CELLULOSIC ETHANOL PRODUC-
TION. 
Subsection (s) of section 211 of the Clean Air Act 
(as added by section 1512 of the Energy Policy Act of 
2005) (and as redesignated by section 107 of this Act), 
relating to conversion assistance for cellulosic biomass, 
waste-derived ethanol, and approved renewable fuels, is 
amended as follows: 
(1) By adding the following new subparagraphs 
at the end of paragraph (3): 
‘‘(D) $500,000,000 for fiscal year 2009. 
‘‘(E) $500,000,000 for fiscal year 2010.’’. 
(2) By adding the following new paragraph at 
the end thereof: 
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‘‘(5) CRITERIA.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions that promote feedstock diversity and the geo-
graphic dispersion of production facilities.’’. 
SEC. 109. CONSUMER EDUCATION CAMPAIGN RELATING TO 
FLEXIBLE-FUEL VEHICLES. 
The Secretary of Transportation, in consultation with 
the Secretary of Energy, shall carry out an education pro-
gram to inform consumers about which motor vehicles are 
flexible-fuel vehicles and how to exercise their opportunity 
to choose E85 or B20. As part of such program, the Sec-
retary of Transportation may coordinate with motor vehi-
cle manufacturers to notify owners of flexible-fuel vehicles 
of locations where E85 and B20 are sold in their area. 
SEC. 110. REVIEW OF NEW RENEWABLE FUELS OR NEW RE-
NEWABLE FUEL ADDITIVES. 
Notwithstanding any other provision of law, a waiver 
under section 211(f)(4) of the Clean Air Act for any re-
newable fuel or renewable fuel additive shall not be consid-
ered granted unless the Administrator of the Environment 
Protection Agency, following a public notice and comment 
period, takes final action granting the application for a 
waiver based on an application of the section 211(f)(4) 
standards and criteria with respect to emissions control 
devices or systems and vehicle emissions standards to on- 
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road and non-road engines and vehicles. The Adminis-
trator shall take final action on an application for a waiver 
no later than 270 days after the Administrator receives 
the application. 
SEC. 
111. 
DOMESTIC 
MANUFACTURING 
CONVERSION 
GRANT PROGRAM. 
Section 712 of the Energy Policy Act of 2005 (42 
U.S.C. 16062) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘, flexible-fuel,’’ after 
‘‘production of efficient hybrid’’; and 
(B) by adding at the end the following: 
‘‘Priority shall be given to the refurbishment or 
retooling of manufacturing facilities that have 
recently ceased operation or will cease operation 
in the near future.’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) COORDINATION WITH STATE AND LOCAL PRO-
GRAMS.—The Secretary may coordinate implementation of 
this section with State and local programs designed to ac-
complish similar goals, including the retention and retrain-
ing of skilled workers from the such manufacturing facili-
ties, including by establishing matching grant arrange-
ments. 
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section.’’. 
SEC. 112. CELLULOSIC ETHANOL AND BIOFUELS RE-
SEARCH. 
There are authorized to be appropriated to the Sec-
retary of Energy $50,000,000 for fiscal year 2008, to re-
main available until expended, for cellulosic ethanol and 
biofuels research and development grants to 10 entities 
from among 1890 land grant colleges, Historically Black 
Colleges or Universities, Tribal serving institutions, or 
Hispanic serving institutions, selected by the Secretary of 
Energy to receive a grant under this section through a 
peer-reviewed competitive process. The selected entities 
shall then collaborate with one of the Department of Ener-
gy’s Office of Science Bioenergy Research Centers. 
SEC. 113. FEDERAL FLEET FUELING CENTERS. 
(a) IN GENERAL.—Not later than January 1, 2010, 
the head of each Federal agency shall install at least 1 
renewable fuel pump at each Federal fleet fueling center 
in the United States under the jurisdiction of the head 
of the Federal agency. 
(b) REPORT.—Not later than October 31 of the first 
calendar year beginning after the date of the enactment 
of this Act, and each October 31 thereafter, the President 
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shall submit to Congress a report that describes the 
progress toward complying with subsection (a), including 
identifying— 
(1) the number of Federal fleet fueling centers 
that contain at least 1 renewable fuel pump; and 
(2) the number of Federal fleet fueling centers 
that do not contain any renewable fuel pumps. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 114. STUDY OF IMPACT OF INCREASED RENEWABLE 
FUEL USE. 
(a) IN GENERAL.—The Secretary of Energy shall, 
after consultation with the Administrator of the Environ-
mental Protection Agency, the Administrator of the En-
ergy Information Administration, and the Secretary of Ag-
riculture, conduct a study to assess the impact of in-
creased use of renewable fuels on the United States econ-
omy. The Secretary shall enter into an arrangement with 
the National Academy of Sciences to provide peer review 
of the study. 
(b) STUDY ELEMENTS.—The study shall analyze, in 
terms of renewable fuels, the following: 
(1) The impact of the use of renewable fuels on 
the energy security of the United States. 
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(2) The impact of the use of renewable fuels on 
public health and the environment, including air and 
water quality. 
(3) The impact of renewable fuels on the infra-
structure of the United States, including the deliver-
ability of materials, goods, and products other than 
alternative fuels. 
(4) The impact of the use of renewable fuels on 
job creation, the price and supply of agricultural 
commodities, and rural economic development. 
(c) PARTICIPATION.—In conducting the study under 
this section, the Secretary and other agencies shall seek 
the participation, and consider the input, of the following: 
(1) Producers of feed grains. 
(2) Producers of livestock, poultry, and pork 
products. 
(3) Producers of energy. 
(4) Individuals and entities interested in issues 
relating to conservation, the environment, and nutri-
tion, and users of renewable fuels. 
(d) REPORT.—The Secretary shall submit a report 
to the Congress containing the initial results of the study 
under this section not later than 2 years after enactment 
of this Act and subsequently supplement and update such 
report every 3 years thereafter. 
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SEC. 115. GRANTS FOR RENEWABLE FUEL PRODUCTION RE-
SEARCH AND DEVELOPMENT IN CERTAIN 
STATES. 
(a) IN
GENERAL.—The Secretary shall provide 
grants to eligible entities to conduct research into, and de-
velop and implement, renewable fuel production tech-
nologies in States with low rates of ethanol production, 
including low rates of production of cellulosic biomass eth-
anol, as determined by the Secretary. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under the section, an entity shall— 
(1)(A) be an institution of higher education (as 
defined in section 2 of the Energy Policy Act of 
2005 (42 U.S.C. 15801)) located in a State de-
scribed in subsection (a); 
(B) be an institution— 
(i) referred to in section 532 of the Equity 
in Educational Land-Grant Status Act of 1994 
(Public Law 103–382; 7 U.S.C. 301 note); 
(ii) that is eligible for a grant under the 
Tribally Controlled College or University Assist-
ance Act of 1978 (25 U.S.C. 1801 et seq.), in-
cluding Dine College; or 
(iii) that is eligible for a grant under the 
Navajo Community College Act (25 U.S.C. 
640a et seq.); or 
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(C) be a consortium of such institutions of 
higher education, industry, State agencies, Indian 
tribal agencies, or local government agencies located 
in the State; and 
(2) have proven experience and capabilities with 
relevant technologies. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$25,000,000 for each of fiscal years 2008 through 2010. 
SEC. 116. STUDY OF EFFECT OF OIL PRICES. 
The Secretary of Energy shall conduct a study to re-
view the anticipated effects on renewable fuels production 
if oil were priced no lower than $40 per barrel. The Sec-
retary shall report the findings of such study to Congress 
by December 31, 2008. 
SEC. 117. BIODIESEL AS ALTERNATIVE FUEL FOR CAFE 
PURPOSES. 
Section 32901(a) of title 49, United States Code, is 
amended— 
(1) in paragraph (1), by redesignating subpara-
graphs (J) and (K) as subparagraphs (K) and (L), 
respectively, and inserting after subparagraph (I) 
the following: 
‘‘(J) B20 biodiesel blend;’’; and 
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(2) by redesignating paragraphs (7) through 
(16) as paragraphs (9) through (18), respectively, 
and insert after paragraph (6) the following: 
‘‘(7) ‘biodiesel’ means the monoalkyl esters of 
long chain fatty acids derived from plant or animal 
matter which meet— 
‘‘(A) the registration requirements for 
fuels and fuel additives established by the Envi-
ronmental Protection Agency under section 211 
of the Clean Air Act (42 U.S.C. 7545); and 
‘‘(B) the requirements of the American So-
ciety of Testing and Materials D6751. 
‘‘(8) ‘B20 biodiesel blend’ means a mixture of 
biodiesel and diesel fuel approximately 20 percent of 
the content of which is biodiesel, and commonly 
known as ‘B20’.’’. 
TITLE II—UNITED STATES- 
ISRAEL ENERGY COOPERATION 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘United States-Israel 
Energy Cooperation Act’’. 
SEC. 202. FINDINGS. 
Congress finds that— 
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(1) it is in the highest national security inter-
ests of the United States to ensure secure access to 
reliable energy sources; 
(2) the United States relies heavily on the for-
eign supply of crude oil to meet the energy needs of 
the United States, currently importing 58 percent of 
the total oil requirements of the United States, of 
which 45 percent comes from member states of the 
Organization of Petroleum Exporting Countries 
(OPEC); 
(3) revenues from the sale of oil by some of 
these countries directly or indirectly provide funding 
for terrorism and propaganda hostile to the values 
of the United States and the West; 
(4) in the past, these countries have manipu-
lated the dependence of the United States on the oil 
supplies of these countries to exert undue influence 
on United States policy, as during the embargo of 
OPEC during 1973 on the sale of oil to the United 
States, which became a major factor in the ensuing 
recession; 
(5) research by the Energy Information Admin-
istration of the Department of Energy has shown 
that the dependence of the United States on foreign 
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oil will increase by 33 percent over the next 20 
years; 
(6) a rise in the price of imported oil sufficient 
to increase gasoline prices by 10 cents per gallon at 
the pump would result in an additional outflow of 
$18,000,000,000 from the United States to oil-ex-
porting nations; 
(7) for economic and national security reasons, 
the United States should reduce, as soon as prac-
ticable, the dependence of the United States on na-
tions that do not share the interests and values of 
the United States; 
(8) the State of Israel has been a steadfast ally 
and a close friend of the United States since the cre-
ation of Israel in 1948; 
(9) like the United States, Israel is a democracy 
that holds civil rights and liberties in the highest re-
gard and is a proponent of the democratic values of 
peace, freedom, and justice; 
(10) cooperation between the United States and 
Israel on such projects as the development of the 
Arrow Missile has resulted in mutual benefits to 
United States and Israeli security; 
(11) the special relationship between Israel and 
the United States has been and continues to be 
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manifested in a variety of jointly-funded cooperative 
programs in the field of scientific research and de-
velopment, such as— 
(A) the United States-Israel Binational 
Science Foundation (BSF); 
(B) the Israel-United States Binational 
Agricultural Research and Development Fund 
(BARD); and 
(C) the Israel-United States Binational In-
dustrial Research and Development (BIRD) 
Foundation; 
(12) these programs, supported by the match-
ing contributions from the Government of Israel and 
the Government of the United States and directed 
by key scientists and academics from both countries, 
have made possible many scientific breakthroughs in 
the fields of life sciences, medicine, bioengineering, 
agriculture, biotechnology, communications, and oth-
ers; 
(13) on February 1, 1996, United States Sec-
retary of Energy Hazel R. O’Leary and Israeli Min-
ister of Energy and Infrastructure Gonen Segev 
signed the Agreement Between the Department of 
Energy of the United States of America and the 
Ministry of Energy and Infrastructure of Israel Con-
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cerning Energy Cooperation, to establish a frame-
work for collaboration between the United States 
and Israel in energy research and development ac-
tivities; 
(14) the United States and Israeli governments 
should promote cooperation in a broad range of 
projects designed to enhance supplies of nonpetro-
leum energy for both countries, and to provide for 
cutting edge research in each country; 
(15) Israeli scientists and researchers have long 
been at the forefront of research and development in 
the field of alternative renewable energy sources; 
(16) many of the top corporations of the world 
have recognized the technological and scientific ex-
pertise of Israel by locating important research and 
development facilities in Israel; 
(17) among the technological breakthroughs 
made by Israeli scientists and researchers in the 
field of alternative, renewable energy sources are— 
(A) the development of a cathode that uses 
hexavalent iron salts that accept 3 electrons per 
ion and enable rechargeable batteries to provide 
3 times as much electricity as existing recharge-
able batteries; 
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(B) the development of a technique that 
vastly increases the efficiency of using solar en-
ergy to generate hydrogen for use in energy 
cells; and 
(C) the development of a novel membrane 
used in new and powerful direct-oxidant fuel 
cells that is capable of competing favorably with 
hydrogen fuel cells and traditional internal com-
bustion engines; and 
(18) cooperation between the United States and 
Israel in the field of research and development of al-
ternative renewable energy sources would be in the 
interests of both countries, and both countries stand 
to gain much from such cooperation. 
SEC. 203. GRANT PROGRAM. 
(a) AUTHORITY.—Pursuant to the responsibilities de-
scribed in section 102(10), (14), and (17) of the Depart-
ment of Energy Organization Act (42 U.S.C. 7112(10), 
(14), and (17)) and section 103(9) of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5813(9)), the Secretary, 
in consultation with the BIRD or BSF, shall award grants 
to eligible entities. 
(b) APPLICATION.— 
(1) SUBMISSION OF APPLICATIONS.—To receive 
a grant under this section, an eligible entity shall 
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submit an application to the Secretary containing 
such information and assurances as the Secretary, in 
consultation with the BIRD or BSF, may require. 
(2) SELECTION OF ELIGIBLE ENTITIES.—The 
Secretary, in consultation with the Directors of the 
BIRD and BSF, may review any application sub-
mitted by any eligible entity and select any eligible 
entity meeting criteria established by the Secretary, 
in consultation with the Advisory Board, for a grant 
under this section. 
(c) AMOUNT OF GRANT.—The amount of each grant 
awarded for a fiscal year under this section shall be deter-
mined by the Secretary, in consultation with the BIRD 
or BSF. 
(d) RECOUPMENT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall establish procedures and criteria for 
recoupment in connection with any eligible project 
carried out by an eligible entity that receives a grant 
under this section, which has led to the development 
of a product or process which is marketed or used. 
(2) AMOUNT REQUIRED.— 
(A) Except as provided in subparagraph 
(B), such recoupment shall be required as a 
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condition for award and be proportional to the 
Federal share of the costs of such project, and 
shall be derived from the proceeds of royalties 
or licensing fees received in connection with 
such product or process. 
(B) In the case where a product or process 
is used by the recipient of a grant under this 
section for the production and sale of its own 
products or processes, the recoupment shall 
consist of a payment equivalent to the payment 
which would be made under subparagraph (A). 
(3) WAIVER.—The Secretary may at any time 
waive or defer all or some of the recoupment re-
quirements of this subsection as necessary, depend-
ing on— 
(A) the commercial competitiveness of the 
entity or entities developing or using the prod-
uct or process; 
(B) the profitability of the project; and 
(C) the commercial viability of the product 
or process utilized. 
(e) PRIVATE FUNDS.—The Secretary may accept 
contributions of funds from private sources to carry out 
this title. 
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of the 7-year period which begins on the date of the enact-
ment of this Act. 
SEC. 207. AUTHORIZATION OF APPROPRIATIONS. 
The Secretary is authorized to expend not more than 
$20,000,000 to carry out this title for each of fiscal years 
2008 through 2014 from funds previously authorized to 
the Office of Energy Efficiency and Renewable Energy. 
SEC. 208. CONSTITUTIONAL AUTHORITY. 
The Constitutional authority on which this title rests 
is the power of Congress to regulate commerce with for-
eign nations as enumerated in article I, section 8 of the 
United States Constitution. 
Æ 
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