446
evaluate fuel recycling or transmutation technologies 
which are proliferation-resistant and minimize environ-
mental and public health and safety impacts, as an alter-
native to aqueous reprocessing technologies deployed as of 
the date of enactment of this Act, in support of evaluation 
of alternative national strategies for spent nuclear fuel and 
advanced reactor concepts. The program shall be subject 
to annual review by the Secretary’s Nuclear Energy Re-
search Advisory Committee or other independent entity, 
as appropriate. 
(b) INTERNATIONAL COOPERATION.—The Secretary 
shall seek opportunities to engage international partners 
with expertise in advanced fuel recycling technologies 
where such partnerships may help achieve program goals. 
SEC. 949. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER-
ING SUPPORT. 
(a) IN GENERAL.—The Secretary shall conduct a 
program to invest in human resources and infrastructure 
in the nuclear sciences and related fields, including health 
physics, nuclear engineering, and radiochemistry, con-
sistent with Departmental missions related to civilian nu-
clear research, development, demonstration, and commer-
cial application. 
(b) REQUIREMENTS.—In carrying out the program 
under this section, the Secretary shall—
447
(1) conduct a graduate and undergraduate fel-
lowship program to attract new and talented stu-
dents, which may include fellowships for students to 
spend time at National Laboratories in the areas of 
nuclear science, engineering, and health physics with 
a member of the National Laboratory staff acting as 
a mentor; 
(2) conduct a junior faculty research initiation 
grant program to assist universities in recruiting 
and retaining new faculty in the nuclear sciences 
and engineering by awarding grants to junior faculty 
for research on issues related to nuclear energy engi-
neering and science; 
(3) support fundamental nuclear sciences, engi-
neering, and health physics research through a nu-
clear engineering education and research program; 
(4) encourage collaborative nuclear research 
among industry, National Laboratories, and univer-
sities; and 
(5) support communication and outreach re-
lated to nuclear science, engineering, and health 
physics. 
(c) STRENGTHENING UNIVERSITY RESEARCH AND 
TRAINING REACTORS
AND ASSOCIATED INFRASTRUC-
448
TURE.—In carrying out the program under this section, 
the Secretary may support—
(1) converting research reactors from high-en-
richment fuels to low-enrichment fuels and upgrad-
ing operational instrumentation; 
(2) consortia of universities to broaden access 
to university research reactors; 
(3) student training programs, in collaboration 
with the United States nuclear industry, in reli-
censing and upgrading reactors, including through 
the provision of technical assistance; and 
(4) reactor improvements as part of a focused 
effort that emphasizes research, training, and edu-
cation, including through the Innovations in Nuclear 
Infrastructure and Education Program or any simi-
lar program. 
(d) OPERATIONS AND MAINTENANCE.—Funding for 
a project provided under this section may be used for a 
portion of the operating and maintenance costs of a re-
search reactor at a university used in the project. 
SEC. 950. UNIVERSITY-NATIONAL LABORATORY INTER-
ACTIONS. 
The Secretary shall conduct—
(1) a fellowship program for professors at uni-
versities to spend sabbaticals at National Labora-
449
tories in the areas of nuclear science and technology; 
and 
(2) a visiting scientist program in which Na-
tional Laboratory staff can spend time in academic 
nuclear science and engineering departments. 
SEC. 951. NUCLEAR POWER 2010 PROGRAM. 
The Secretary shall carry out a Nuclear Power 2010 
Program, consistent with recommendations in the October 
2001 report entitled ‘‘A Roadmap to Deploy New Nuclear 
Power Plants in the United States by 2010’’ issued by 
the Nuclear Energy Research Advisory Committee of the 
Department. The Program shall include—
(1) the expertise and capabilities of industry, 
universities, and National Laboratories in evaluation 
of advanced nuclear fuel cycles and fuels testing; 
(2) a variety of reactor designs suitable for both 
developed and developing nations; 
(3) participation of international collaborators 
in research, development, and design efforts as ap-
propriate; and 
(4) university and industry participation. 
SEC. 952. GENERATION IV NUCLEAR ENERGY SYSTEMS INI-
TIATIVE. 
The Secretary shall carry out a Generation IV Nu-
clear Energy Systems Initiative to develop an overall tech-
450
nology plan and to support research, development, dem-
onstration, and commercial application necessary to make 
an informed technical decision about the most promising 
candidates for the eventual commercial application of ad-
vanced fission reactor technology for the generation of 
electricity. The Initiative shall examine advanced prolifera-
tion-resistant and passively safe reactor designs, including 
designs that—
(1) are economically competitive with other elec-
tric power generation plants; 
(2) have higher efficiency, lower cost, and im-
proved safety compared to reactors in operation on 
the date of enactment of this Act; 
(3) use fuels that are proliferation-resistant and 
have substantially reduced production of high-level 
waste per unit of output; and 
(4) use improved instrumentation. 
SEC. 953. CIVILIAN INFRASTRUCTURE AND FACILITIES. 
The Secretary shall operate and maintain infrastruc-
ture and facilities to support the nuclear energy research, 
development, demonstration, and commercial application 
programs, including radiological facilities management, 
isotope production, and facilities management.
451
SEC. 954. NUCLEAR ENERGY RESEARCH AND DEVELOP-
MENT INFRASTRUCTURE PLAN. 
In carrying out section 919, the Secretary shall—
(1) develop an inventory of nuclear science and 
engineering facilities, equipment, expertise, and 
other assets at all of the National Laboratories; 
(2) develop a prioritized list of nuclear science 
and engineering plant and equipment improvements 
needed at each of the National Laboratories; 
(3) consider the available facilities and expertise 
at all National Laboratories and emphasize invest-
ments which complement rather than duplicate capa-
bilities; and 
(4) develop a timeline and a proposed budget 
for the completion of deferred maintenance on plant 
and equipment, 
with the goal of ensuring that Department programs 
under this subtitle will be generally recognized to be 
among the best in the world. 
SEC. 955. IDAHO NATIONAL LABORATORY FACILITIES 
PLAN. 
(a) PLAN.—The Secretary shall develop a comprehen-
sive plan for the facilities at the Idaho National Labora-
tory, especially taking into account the resources available 
at other National Laboratories. In developing the plan, the 
Secretary shall—
452
(1) evaluate the facilities planning processes 
utilized by other physical science and engineering re-
search and development institutions, both in the 
United States and abroad, that are generally recog-
nized as being among the best in the world, and con-
sider how those processes might be adapted toward 
developing such facilities plan; 
(2) avoid duplicating, moving, or transferring 
nuclear science and engineering facilities, equipment, 
expertise, and other assets that currently exist at 
other National Laboratories; 
(3) consider the establishment of a national 
transuranic analytic chemistry laboratory as a user 
facility at the Idaho National Laboratory; 
(4) include a plan to develop, if feasible, the 
Advanced Test Reactor and Test Reactor Area into 
a user facility that is more readily accessible to aca-
demic and industrial researchers; 
(5) consider the establishment of a fast neutron 
source as a user facility; 
(6) consider the establishment of new ‘‘hot 
cells’’ and the configuration of ‘‘hot cells’’ most like-
ly to advance research, development, demonstration, 
and commercial application in nuclear science and 
engineering, especially in the context of the condition
453
and availability of these facilities elsewhere in the 
National Laboratories; and 
(7) include a timeline and a proposed budget 
for the completion of deferred maintenance on plant 
and equipment. 
(b) TRANSMITTAL TO CONGRESS.—Not later than 
one year after the date of enactment of this Act, the Sec-
retary shall transmit such plan to Congress. 
SEC. 956. AUTHORIZATION OF APPROPRIATIONS. 
(a) PROGRAM AUTHORIZATION.—The following sums 
are authorized to be appropriated to the Secretary for the 
purposes of carrying out this chapter: 
(1) $407,000,000 for fiscal year 2006. 
(2) $427,000,000 for fiscal year 2007. 
(3) $449,000,000 for fiscal year 2008. 
(4) $471,000,000 for fiscal year 2009. 
(5) $495,000,000 for fiscal year 2010. 
(b) UNIVERSITY SUPPORT.—Of the funds authorized 
under subsection (a), the following sums are authorized 
to be appropriated to carry out section 949: 
(1) $35,200,000 for fiscal year 2006. 
(2) $44,350,000 for fiscal year 2007. 
(3) $49,200,000 for fiscal year 2008. 
(4) $55,000,000 for fiscal year 2009. 
(5) $60,000,000 for fiscal year 2010.
454
CHAPTER 2—NEXT GENERATION 
NUCLEAR PLANT PROGRAM 
SEC. 957. DEFINITIONS. 
For purposes of this chapter: 
(1) CONSTRUCTION.—The term ‘‘construction’’ 
means the physical construction of the demonstra-
tion plant, and the physical construction, purchase, 
or manufacture of equipment or components that 
are specifically designed for the demonstration plant, 
but does not mean the design of the facility, equip-
ment, or components. 
(2) DEMONSTRATION PLANT.—The term ‘‘dem-
onstration plant’’ means an advanced fission reactor 
power plant constructed and operated in accordance 
with this chapter. 
(3) OPERATION.—The term ‘‘operation’’ means 
the operation of the demonstration plant, including 
general maintenance and provision of power, heating 
and cooling, and other building services that are spe-
cifically for the demonstration plant, but does not 
mean operations that support other activities co-
located with the demonstration plant. 
SEC. 958. NEXT GENERATION NUCLEAR POWER PLANT. 
(a) IN GENERAL.—The Secretary shall conduct a 
program of research, development, demonstration, and
455
commercial application of advanced nuclear fission reactor 
technology. The objective of this program shall be to dem-
onstrate the technical and economic feasibility of an ad-
vanced nuclear fission reactor power plant design for the 
commercial production of electricity. 
(b) RESEARCH AND DEVELOPMENT.—The program 
shall include research, development, design, planning, and 
all other necessary activities to support the construction 
and operation of the demonstration plant. 
(c) SUBSYSTEM DEMONSTRATIONS.—The Secretary 
shall support demonstration of enabling technologies and 
subsystems and other research, development, demonstra-
tion, and commercial application activities necessary to 
support the activities in this chapter. 
(d) CONSTRUCTION AND OPERATION.—The program 
shall culminate in the construction and operation of the 
demonstration plant based on a design selected by the Sec-
retary in accordance with procedures described in the plan 
required by section 960(c). The demonstration plant shall 
be located and constructed within the United States and 
shall be operational, and capable of demonstrating the 
commercial production of electricity, by December 31, 
2015. 
(e) LIMITATION.—No funds shall be expended for the 
construction or operation of the demonstration plant until
456
90 days have elapsed after the transmission of the plan 
described in section 960(c). 
SEC. 959. ADVISORY COMMITTEE. 
The Secretary shall appoint a Next Generation Nu-
clear Power Plant Subcommittee of the Nuclear Energy 
Research Advisory Council to provide advice to the Sec-
retary on technical matters and program management for 
the duration of the program and construction project 
under this chapter. 
SEC. 960. PROGRAM REQUIREMENTS. 
(a) PARTNERSHIPS.—In carrying out the program 
under this chapter, the Secretary shall make use of part-
nerships with industry for the research, development, de-
sign, construction, and operation of the demonstration 
plant. In establishing such partnerships, the Secretary 
shall give preference to companies for which the principal 
base of operations is located in the United States. 
(b) INTERNATIONAL COLLABORATION.—(1) The Sec-
retary shall seek international cooperation, participation, 
and financial contribution in this program, including as-
sistance from specialists or facilities from member coun-
tries of the Generation IV International Forum, the Rus-
sian Federation, or other international partners where 
such specialists or facilities provide access to cost-effective 
and relevant skills or test capabilities.
457
(2) International activities shall be carried out in con-
sultation with the Generation IV International Forum. 
(3) The program may include demonstration of se-
lected program objectives in a partner nation. 
(c) PROGRAM PLAN.—Not later than one year after 
the date of enactment of this Act, the Secretary shall 
transmit to Congress a comprehensive program plan. The 
program plan shall—
(1) describe the plan for development, selection, 
management, ownership, operation, and decommis-
sioning of the demonstration plant; 
(2) identify program milestones and a timeline 
for achieving these milestones; 
(3) provide for development of risk-based cri-
teria for any future commercial development of a re-
actor architecture based on that of the demonstra-
tion plant; 
(4) include a projected budget required to meet 
the milestones; and 
(5) include an explanation of any major pro-
gram decisions that deviate from program advice 
given to the Secretary by the advisory committee es-
tablished under section 959.
458
SEC. 961. AUTHORIZATION OF APPROPRIATIONS. 
(a) RESEARCH, DEVELOPMENT, AND DESIGN PRO-
GRAMS.—The following sums are authorized to be appro-
priated to the Secretary for the purposes of carrying out 
this chapter except for the demonstration plant activities 
described in subsection (b): 
(1) For fiscal year 2006, $150,000,000. 
(2) For fiscal year 2007, $150,000,000. 
(3) For fiscal year 2008, $150,000,000. 
(4) For fiscal year 2009, $150,000,000. 
(5) For fiscal year 2010, $150,000,000. 
(b) REACTOR CONSTRUCTION.—There are authorized 
to be appropriated to the Secretary such sums as may be 
necessary for operation and construction of the dem-
onstration plant under this chapter. The Secretary shall 
not spend more than $500,000,000 for demonstration 
plant reactor construction activities under this chapter. 
Subtitle F—Fossil Energy 
CHAPTER 1—RESEARCH PROGRAMS 
SEC. 962. ENHANCED FOSSIL ENERGY RESEARCH AND DE-
VELOPMENT PROGRAMS. 
(a) IN GENERAL.—The Secretary shall, in conjunc-
tion with industry, conduct fossil energy research, develop-
ment, demonstration, and commercial applications pro-
grams, including activities under this chapter, with the 
goal of improving the efficiency, effectiveness, and envi-
459
ronmental performance of fossil energy production, up-
grading, conversion, and consumption. Such programs 
shall be focused on—
(1) increasing the conversion efficiency of all 
forms of fossil energy through improved tech-
nologies; 
(2) decreasing the cost of all fossil energy pro-
duction, generation, and delivery; 
(3) promoting diversity of energy supply; 
(4) decreasing the Nation’s dependence on for-
eign energy supplies; 
(5) improving United States energy security; 
(6) decreasing the environmental impact of en-
ergy-related activities; and 
(7) increasing the export of fossil energy-related 
equipment, technology, and services from the United 
States. 
(b) GOALS.—
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance
460
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.
461
(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
462
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
463
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.
464
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
465
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.
466
(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. 
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).
467
(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. 
(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
468
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 
(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
469
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. 
(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.
470
(3) CONFLICT OF INTEREST.—
(A) PROCEDURES.—The Secretary shall 
establish procedures—
(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).
471
(d) SELECTION OF THE PROGRAM CONSORTIUM.—
(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) TAX
STATUS.—The program consortium 
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of 1986 
on the date of enactment of this Act. 
(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.
472
(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
473
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.
474
(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
475
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).
476
(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.—
477
(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).
478
(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.
479
(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.
480
(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 consor-
tium. 
(3) DUTIES.—The advisory committee under 
this subsection shall—
(A) advise the Secretary on the develop-
ment and implementation of programs under 
this chapter related to ultra-deepwater natural 
gas and other petroleum resources; and 
(B) carry out section 970(e)(2)(B).
481
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(b) UNCONVENTIONAL
RESOURCES
TECHNOLOGY 
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 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 em-
ployees or representatives of independent pro-
ducers of natural gas and other petroleum, in-
cluding small producers; 
(B) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production;
482
(C) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration 
and production, including interests in environ-
mental protection and safe operations; 
(D) no individuals who are Federal em-
ployees; and 
(E) no individuals who are board members, 
officers, or employees of the program consor-
tium. 
(3) DUTIES.—The advisory committee under 
this subsection shall—
(A) advise the Secretary on the develop-
ment and implementation of activities under 
this chapter related to unconventional natural 
gas and other petroleum resources; and 
(B) carry out section 970(e)(2)(B). 
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(c) PROHIBITION.—No advisory committee estab-
lished under this section shall make recommendations on