I 
111TH CONGRESS 
1ST SESSION H. R. 2312 
To authorize the Secretary of Energy to make grants to encourage cooperation 
between the United States and China on joint research, development, 
or commercialization of carbon capture and sequestration technology, 
improved energy efficiency, or renewable energy sources. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 7, 2009 
Mr. ISRAEL (for himself, Mr. LARSEN of Washington, Mr. KIRK, and Mrs. 
DAVIS of California) introduced the following bill; which was referred to 
the Committee on Energy and Commerce, and in addition to the Com-
mittee on Science and Technology, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To authorize the Secretary of Energy to make grants to 
encourage cooperation between the United States and 
China on joint research, development, or commercializa-
tion of carbon capture and sequestration technology, im-
proved energy efficiency, or renewable energy sources. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States-China 
Energy Cooperation Act’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The December 2004 National Intelligence 
Council report entitled ‘‘Mapping the Global Future 
in 2020’’ states that the single most important fac-
tor affecting the demand for energy will be global 
economic growth, especially that of China and India. 
(2) The United States and China are both rich 
in coal and look to it for a majority of their elec-
tricity needs. 
(3) China is building its power generation base 
for the first time and the United States is preparing 
to replace a generation of aging electric power facili-
ties. 
(4) Carbon capture and sequestration is a via-
ble technology that still needs significant amounts of 
research and development before it can be widely 
commercialized. 
(5) A study by MIT (2007) on ‘‘The Future of 
Coal’’ outlines the need for several integrated 
projects to demonstrate the feasibility of carbon cap-
ture and sequestration in a variety of countries and 
geological settings. 
(6) The United States and China are already 
working together on the FutureGen project in the 
United States. FutureGen is an initiative to build 
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the world’s first integrated sequestration and hydro-
gen production research power plant. The project is 
intended to create the world’s first zero-emissions 
fossil fuel plant. 
(7) Joint American-Chinese research and devel-
opment on carbon capture technology would improve 
the energy security of both nations. 
(8) Further, both the United States and China 
are actively seeking to promote industrial efficiency 
and conservation. United States industry consumes 
more than one third of all energy used in the United 
States. The United States Department of Energy’s 
Industrial Technologies program aims to invest in 
research and development to reduce industrial en-
ergy use while stimulating productivity and growth. 
(9) The industrial sector represents 68 percent 
of all primary energy consumption in China. In 
2006, China’s National Development and Reform 
Commission launched a major program to improve 
energy efficiency in China’s 1,000 largest enter-
prises, which together consume one third of China’s 
primary energy. Additionally, the Chinese Govern-
ment plans to retire many inefficient power plants 
and close many inefficient industrial plants. 
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(10) There is a need to build capacity among 
scholars in both China and the United States in the 
area of analytic energy and climate change policy. 
SEC. 3. GRANT PROGRAM. 
(a) APPLICATION.—In order to receive a grant under 
this Act, an eligible entity shall submit an application to 
the Secretary containing such information and assurances 
as the Secretary may require. 
(b) SELECTION.—The Secretary shall review any ap-
plication submitted by any eligible entity and select eligible 
entities meeting criteria established by the Secretary to 
receive a grant under this section. The amount of each 
grant awarded for a fiscal year under this section shall 
be determined by the Secretary. 
(c) 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. 
(4) EXCEPTION.—The requirement under this 
subsection shall not apply to purely academic en-
deavors that have no commercial value. 
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(d) USE OF EXISTING PROGRAMS.—The Secretary 
shall carry out this section through existing programs at 
the Department of Energy. 
(e) REPORT.—Not later than 180 days after receiving 
a grant under this section, each recipient shall submit a 
report to the Secretary— 
(1) documenting how the recipient used the 
grant funds; and 
(2) evaluating the level of success of each 
project funded by the grant. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a joint venture comprised of both Chinese 
and United States private business entities, a joint 
venture comprised of both Chinese academic persons 
(who reside and work in China) and United States 
academic persons, or a joint venture comprised of 
both Chinese and United States Federal, State, or 
local government entities which— 
(A) carries out an eligible project; and 
(B) is selected by the Secretary using the 
criteria established by the Secretary. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means a project to encourage cooperation 
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between the United States and China on joint en-
ergy and climate change policy education programs 
and joint research, development, or commercializa-
tion of carbon capture and sequestration technology, 
improved energy efficiency, or renewable energy 
sources. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The Secretary is authorized to ex-
pend not more than $20,000,000 to carry out this Act 
for each of fiscal years 2009 through 2019. 
(b) RELATIONSHIP TO OTHER LAWS.—Amounts au-
thorized under this section may be made available notwith-
standing any other provision of law that restricts assist-
ance to foreign countries. 
Æ 
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