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baselines. The measures shall specify production or 
efficiency performance goals, with quantifiable 5- 
year cost and energy savings target levels, for fossil 
energy, and any other such goals the Secretary con-
siders appropriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing— 
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
(c) COVERED ACTIVITIES.—The Secretary shall en-
sure that the goals stated in subsection (b) are illustrative 
of the outcomes necessary to promote acceptance of the 
programs’ efforts in the marketplace, but at a minimum 
shall encompass the following areas: 
(1) Coal gasifiers. 
(2) Turbine generators, including both natural 
gas and syngas fueled.
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(3) Oxygen separation devices, hydrogen sepa-
ration devices, and carbon dioxide separation tech-
nologies. 
(4) Coal gas and post-combustion emission 
cleanup and disposal equipment, including carbon di-
oxide 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 cat-
egories. 
(6) Production of liquid fuels from nontradi-
tional feedstocks, including syngas, biomass, meth-
ane, 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 par-
ties through seeking comments in the Federal Register 
and other means before transmitting each report under 
subsection (b). 
SEC. 963. FOSSIL RESEARCH AND DEVELOPMENT. 
(a) OBJECTIVES.—The Secretary shall conduct a pro-
gram of fossil research, development, demonstration, and
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commercial application, whose objective shall be to reduce 
emissions from fossil fuel use by developing technologies, 
including precombustion technologies, by 2015 with the 
capability of— 
(1) dramatically increasing electricity gener-
ating efficiencies of coal and natural gas; 
(2) improving combined heat and power ther-
mal 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 emphasize carbon capture and sequestration tech-
nologies and gasification technologies, including gasifi-
cation combined cycle, gasification fuel cells, gasification
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coproduction, hybrid gasification/combustion, or other 
technologies with the potential to address the capabilities 
described in paragraphs (4) and (5) of subsection (a). 
SEC. 964. 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, 
particularly independent operators, to minimize the eco-
nomic dislocation caused by the decline of domestic sup-
plies 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 
discover 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 es-
pecially on unconventional sources such as tar sands, 
heavy oil, and shale oil.
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SEC. 965. TRANSPORTATION FUELS. 
The Secretary shall conduct a program of transpor-
tation fuels research, development, demonstration, and 
commercial application, whose objective shall be to in-
crease the price elasticity of oil supply and demand by fo-
cusing research on— 
(1) reducing the cost of producing transpor-
tation fuels from coal and natural gas; and 
(2) indirect liquefaction of coal and biomass. 
SEC. 966. FUEL CELLS. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application of fuel cells for low-cost, high-effi-
ciency, fuel-flexible, modular power systems. 
(b) DEMONSTRATION.—The program under this sec-
tion shall include demonstration of fuel cell proton ex-
change membrane technology for commercial, residential, 
and transportation applications, and distributed genera-
tion systems, utilizing improved manufacturing production 
and processes. 
SEC. 967. CARBON DIOXIDE CAPTURE RESEARCH AND DE-
VELOPMENT. 
(a) PROGRAM.—The Secretary of Energy shall sup-
port a 10-year program of research and development 
aimed at developing carbon dioxide capture technologies
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for pulverized coal combustion units. The program shall 
focus on— 
(1) developing add-on carbon dioxide capture 
technologies, such as adsorption and absorption 
techniques and chemical processes, to remove carbon 
dioxide from flue gas, producing concentrated 
streams of carbon dioxide potentially amenable to se-
questration; 
(2) combustion technologies that would directly 
produce concentrated streams of carbon dioxide po-
tentially 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 sequestra-
tion partnerships. 
SEC. 968. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for the purposes 
of carrying out this chapter: 
(1) For fiscal year 2006, $583,000,000.
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(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. 
(b) ALLOCATION.—From amounts authorized under 
subsection (a), there are authorized to be appropriated for 
carrying out the program under section 967— 
(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. 
SEC. 
968A. 
WESTERN 
MICHIGAN 
DEMONSTRATION 
PROJECT. 
The Administrator of the Environmental Protection 
Agency, in consultation with the State of Michigan and 
affected local officials, shall conduct a demonstration 
project to address the effect of transported ozone and 
ozone precursors in Southwestern Michigan. The dem-
onstration program shall address projected nonattainment 
areas in Southwestern Michigan that include counties with 
design values for ozone of less than .095 based on years 
2000 to 2002 or the most current 3-year period of air 
quality data. The Administrator shall assess any difficul-
ties such areas may experience in meeting the 8 hour na-
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tional ambient air quality standard for ozone due to the 
effect of transported ozone or ozone precursors into the 
areas. The Administrator shall work with State and local 
officials to determine the extent of ozone and ozone pre-
cursor transport, to assess alternatives to achieve compli-
ance with the 8 hour standard apart from local controls, 
and to determine the timeframe in which such compliance 
could take place. The Administrator shall complete this 
demonstration project no later than 2 years after the date 
of enactment of this section and shall not impose any re-
quirement or sanction that might otherwise apply during 
the pendency of the demonstration project. 
SEC. 968B. WESTERN HEMISPHERE ENERGY COOPERATION. 
(a) PROGRAM.—The Secretary shall carry out a pro-
gram to promote cooperation on energy issues with West-
ern Hemisphere countries. 
(b) ACTIVITIES.—Under the program, the Secretary 
shall fund activities to work with Western Hemisphere 
countries to— 
(1) assist the countries in formulating and 
adopting changes in economic policies and other poli-
cies to— 
(A) increase the production of energy sup-
plies; and 
(B) improve energy efficiency; and
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(2) assist in the development and transfer of 
energy supply and efficiency technologies that would 
have a beneficial impact on world energy markets. 
(c) UNIVERSITY PARTICIPATION.—To the extent 
practicable, the Secretary shall carry out the program 
under this section with the participation of universities so 
as to take advantage of the acceptance of universities by 
Western Hemisphere countries as sources of unbiased 
technical and policy expertise when assisting the Secretary 
in— 
(1) evaluating new technologies; 
(2) resolving technical issues; 
(3) working with those countries in the develop-
ment of new policies; and 
(4) training policymakers, particularly in the 
case of universities that involve the participation of 
minority students, such as Hispanic-serving institu-
tions and Historically Black Colleges and Univer-
sities. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sec-
tion— 
(1) $8,000,000 for fiscal year 2006; 
(2) $10,000,000 for fiscal year 2007; 
(3) $13,000,000 for fiscal year 2008;
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(4) $16,000,000 for fiscal year 2009; and 
(5) $19,000,000 for fiscal year 2010. 
SEC. 968C. ARCTIC ENGINEERING RESEARCH CENTER. 
(a) IN GENERAL.—The Secretary of Energy (referred 
to in this section as the ‘‘Secretary’’) in consultation with 
the Secretary of Transportation and the United States 
Arctic Research Commission shall provide annual grants 
to a university located adjacent to the Arctic Energy Of-
fice of the Department of Energy, to establish and operate 
a university research center to be headquartered in Fair-
banks and to be known as the ‘‘Arctic Engineering Re-
search Center’’ (referred to in this section as the ‘‘Cen-
ter’’). 
(b) PURPOSE.—The purpose of the Center shall be 
to conduct research on, and develop improved methods of, 
construction and use of materials to improve the overall 
performance of roads, bridges, residential, commercial, 
and industrial structures, and other infrastructure in the 
Arctic region, with an emphasis on developing— 
(1) new construction techniques for roads, 
bridges, rail, and related transportation infrastruc-
ture and residential, commercial, and industrial in-
frastructure that are capable of withstanding the 
Arctic environment and using limited energy re-
sources as efficiently as possible;
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(2) technologies and procedures for increasing 
road, bridge, rail, and related transportation infra-
structure and residential, commercial, and industrial 
infrastructure safety, reliability, and integrity in the 
Arctic region; 
(3) new materials and improving the perform-
ance and energy efficiency of existing materials for 
the construction of roads, bridges, rail, and related 
transportation infrastructure and residential, com-
mercial, and industrial infrastructure in the Arctic 
region; and 
(4) recommendations for new local, regional, 
and State permitting and building codes to ensure 
transportation and building safety and efficient en-
ergy use when constructing, using, and occupying 
such infrastructure in the Arctic region. 
(c) OBJECTIVES.—The Center shall carry out— 
(1) basic and applied research in the subjects 
described in subsection (b), the products of which 
shall be judged by peers or other experts in the field 
to advance the body of knowledge in road, bridge, 
rail, and infrastructure engineering in the Arctic re-
gion; and
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(2) an ongoing program of technology transfer 
that makes research results available to potential 
users in a form that can be implemented. 
(d) AMOUNT OF GRANT.—For each of fiscal years 
2006 through 2011, the Secretary shall provide a grant 
in the amount of $3,000,000 to the institution specified 
in subsection (a) to carry out this section. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$3,000,000 for each of fiscal years 2006 through 2011. 
SEC. 968D. BARROW GEOPHYSICAL RESEARCH FACILITY. 
(a) ESTABLISHMENT.—The Secretary of Commerce, 
in consultation with the Secretaries of Energy and the In-
terior, the Director of the National Science Foundation, 
and the Administrator of the Environmental Protection 
Agency, shall establish a joint research facility in Barrow, 
Alaska, to be known as the ‘‘Barrow Geophysical Research 
Facility’’, to support scientific research activities in the 
Arctic. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretaries of 
Commerce, Energy, and the Interior, the Director of the 
National Science Foundation, and the Administrator of 
the Environmental Protection Agency for the planning,
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design, construction, and support of the Barrow Geo-
physical Research Facility $61,000,000. 
CHAPTER 2—ULTRA-DEEPWATER AND UN-
CONVENTIONAL NATURAL GAS AND 
OTHER PETROLEUM RESOURCES 
SEC. 969. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this chapter of research, development, 
demonstration, and commercial application of technologies 
for ultra-deepwater and unconventional natural gas and 
other petroleum resource exploration and production, in-
cluding addressing the technology challenges for small 
producers, safe operations, and environmental mitigation 
(including reduction of greenhouse gas emissions and se-
questration of carbon). 
(b) PROGRAM ELEMENTS.—The program under this 
chapter shall address the following areas, including im-
proving safety and minimizing environmental impacts of 
activities within each area: 
(1) Ultra-deepwater architecture and tech-
nology, including drilling to formations in the Outer 
Continental Shelf to depths greater than 15,000 
feet.
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(2) Unconventional natural gas and other petro-
leum resource exploration and production tech-
nology. 
(3) The technology challenges of small pro-
ducers. 
(4) Complementary research performed by the 
National Energy Technology Laboratory for the 
United States Department of Energy. 
(c) LIMITATION ON LOCATION OF FIELD ACTIVI-
TIES.—Field activities under the program under this 
chapter shall be carried out only— 
(1) in— 
(A) areas in the territorial waters of the 
United States not under any Outer Continental 
Shelf moratorium as of September 30, 2002; 
(B) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(C) areas onshore in the United States on 
State or private land, subject to applicable law; 
and
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(2) with the approval of the appropriate Fed-
eral or State land management agency or private 
land owner. 
(d) ACTIVITIES AT THE NATIONAL ENERGY TECH-
NOLOGY LABORATORY.—The Secretary, through the Na-
tional Energy Technology Laboratory, shall carry out a 
program of research and other activities complementary 
to and supportive of the research programs under sub-
section (b). 
(e) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this part, the Secretary shall con-
sult regularly with the Secretary of the Interior. 
SEC. 970. ULTRA-DEEPWATER AND UNCONVENTIONAL ON-
SHORE NATURAL GAS AND OTHER PETRO-
LEUM RESEARCH AND DEVELOPMENT PRO-
GRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under section 969, to maximize the value of nat-
ural gas and other petroleum resources of the United 
States, by increasing the supply of such resources, through 
reducing the cost and increasing the efficiency of explo-
ration for and production of such resources, while improv-
ing safety and minimizing environmental impacts.
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(b) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all as-
pects of the program under this section. 
(c) ROLE OF THE PROGRAM CONSORTIUM.— 
(1) IN GENERAL.—The Secretary shall contract 
with a consortium to— 
(A) manage awards pursuant to subsection 
(f)(3); 
(B) issue project solicitations upon ap-
proval of the Secretary; 
(C) make project awards upon approval of 
the Secretary; 
(D) disburse funds awarded under sub-
section (f) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(e); and 
(E) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except 
as specifically authorized under this section. 
(3) CONFLICT OF INTEREST.— 
(A) PROCEDURES.—The Secretary shall 
establish procedures—
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(i) to ensure that each board member, 
officer, or employee of the program consor-
tium who is in a decisionmaking capacity 
under subsection (f)(3) shall disclose to the 
Secretary any financial interests in, or fi-
nancial relationships with, applicants for or 
recipients of awards under this section, in-
cluding those of his or her spouse or minor 
child, unless such relationships or interests 
would be considered to be remote or incon-
sequential; 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 over-
sight under subsection (f)(4) with respect 
to such applicant or recipient. 
(B) FAILURE TO COMPLY.—The Secretary 
may disqualify an application or revoke an 
award under this section if a board member, of-
ficer, or employee has failed to comply with pro-
cedures required under subparagraph (A)(ii). 
(d) SELECTION OF THE PROGRAM CONSORTIUM.—
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(1) IN GENERAL.—The Secretary shall select 
the program consortium through an open, competi-
tive process. 
(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 Sec-
retary. 
(3) REQUIREMENT OF SECTION 501(c)(3) STA-
TUS.—The Secretary shall not select a consortium 
under this section unless such consortium is an or-
ganization described in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and exempt from tax 
under such section 501(a) of such Code. 
(4) SCHEDULE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall solicit proposals from eligible consortia to per-
form the duties in subsection (c)(1), which shall be 
submitted not later than 180 days after the date of 
enactment of this Act. The Secretary shall select the 
program consortium not later than 270 days after 
such date of enactment.
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(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall— 
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected 
as the program consortium, an applicant must be an 
entity whose members have collectively demonstrated 
capabilities and experience in planning and man-
aging research, development, demonstration, and 
commercial application programs for ultra-deepwater 
and unconventional natural gas or other petroleum 
exploration or production. 
(7) FOCUS AREAS FOR AWARDS.— 
(A) 
ULTRA-DEEPWATER
RESOURCES.— 
Awards 
from 
allocations 
under 
section 
976(d)(1) shall focus on the development and 
demonstration of individual exploration and 
production technologies as well as integrated
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systems technologies including new architec-
tures for production in ultra-deepwater. 
(B) 
UNCONVENTIONAL
RESOURCES.— 
Awards 
from 
allocations 
under 
section 
976(d)(2) shall focus on areas including ad-
vanced coalbed methane, deep drilling, natural 
gas production from tight sands, natural gas 
production from gas shales, stranded gas, inno-
vative exploration and production techniques, 
enhanced recovery techniques, and environ-
mental mitigation of unconventional natural gas 
and other petroleum resources exploration and 
production. 
(C) SMALL PRODUCERS.—Awards from al-
locations under section 976(d)(3) shall be made 
to consortia consisting of small producers or or-
ganized primarily for the benefit of small pro-
ducers, and shall focus on areas including com-
plex geology involving rapid changes in the type 
and quality of the oil and gas reservoirs across 
the reservoir; low reservoir pressure; unconven-
tional natural gas reservoirs in coalbeds, deep 
reservoirs, tight sands, or shales; and unconven-
tional oil reservoirs in tar sands and oil shales.
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(8) CRITERION.—The Secretary shall consider 
the amount of the fee an applicant proposes to re-
ceive 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 spe-
cific written recommendations from the pro-
gram consortium for each element to be ad-
dressed in the plan, including those described in 
paragraph (4). The program consortium shall 
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 consor-
tium under subparagraph (A) to the Ultra- 
Deepwater Advisory Committee established 
under section 972(a) and to the Unconventional
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Resources Technology Advisory Committee es-
tablished under section 972(b), and such Advi-
sory Committees shall provide to the Secretary 
written comments by a date determined by the 
Secretary. The Secretary may also solicit com-
ments 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 trans-
mit to Congress 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 pro-
gram 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 program consortium to carry out sub-
section (f)(3).
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(5) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the 
Secretary of the Interior, shall provide an annual re-
port to Congress with the President’s budget on the 
estimated cumulative increase in Federal royalty re-
ceipts (if any) resulting from the implementation of 
this part. The initial report under this paragraph 
shall be submitted in the first President’s budget fol-
lowing the completion of the first annual plan re-
quired under this subsection. 
(f) AWARDS.— 
(1) IN GENERAL.—Upon approval of the Sec-
retary the program consortium shall make awards 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 members 
of the program consortium may receive such awards. 
(2) PROPOSALS.—Upon approval of the Sec-
retary the program 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.—
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(A) IN
GENERAL.—The program consor-
tium shall oversee 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 pro-
gram. This compensation may include a manage-
ment 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).
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(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 pur-
poses and requirements of this part. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report. 
(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. 
SEC. 971. ADDITIONAL REQUIREMENTS FOR AWARDS. 
(a) DEMONSTRATION PROJECTS.—An application for 
an award under this chapter 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 969(c), 
a demonstration project under this chapter relating to an 
ultra-deepwater technology or an ultra-deepwater architec-
ture may be conducted in deepwater depths.
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(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 
award under this chapter is made to a consortium (other 
than the program consortium), the consortium shall pro-
vide 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 chapter shall be 
designated for technology transfer and outreach activities 
under this chapter. 
(e) COST SHARING REDUCTION FOR INDEPENDENT 
PRODUCERS.—In applying the cost sharing requirements 
under section 911 to an award under this chapter the Sec-
retary 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. 972. ADVISORY COMMITTEES. 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
retary shall establish an advisory committee to be 
known as the Ultra-Deepwater Advisory Committee.