IB 
Union Calendar No. 305 
109TH CONGRESS 
2D SESSION 
H. R. 2730 
[Report No. 109–543] 
To establish a grant program to fund eligible joint ventures between United 
States and Israeli businesses and academic persons, to establish the 
International Energy Advisory Board, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2005 
Mr. SHADEGG (for himself, Mr. SHERMAN, Mr. KING of New York, Mr. PAS-
TOR, Mr. BURTON of Indiana, Mr. RENZI, Mr. MILLER of Florida, Mr. 
CANNON, Mr. PALLONE, Mr. ENGEL, Mr. CROWLEY, Mr. GORDON, Mr. 
KENNEDY
of Rhode Island, Ms. BERKLEY, Mr. MCNULTY, Mrs. 
MALONEY, Mr. WAXMAN, and Ms. SCHAKOWSKY) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce 
JUNE 29, 2006 
Additional sponsors: Mr. MARSHALL, Mr. MEEK of Florida, Mr. OWENS, Mr. 
CHANDLER, Mr. ANDREWS, Mrs. MCCARTHY, Mr. GRIJALVA, Mr. HOLT, 
Ms. ROS-LEHTINEN, Mr. ROTHMAN, Mr. GENE GREEN of Texas, Mr. 
SKELTON, Mr. BERMAN, Mr. CASE, Mr. BISHOP of New York, Mr. RAN-
GEL, Mr. DENT, Mr. NORWOOD, Mr. FOSSELLA, Mr. ROGERS of Michi-
gan, Mr. DOYLE, Mr. HIGGINS, Mr. WEXLER, Ms. SCHWARTZ of Penn-
sylvania, Mr. FERGUSON, Mr. BARROW, Ms. WASSERMAN SCHULTZ, Mr. 
INSLEE, Mr. SCHWARZ of Michigan, Mr. RAMSTAD, Mr. HONDA, Mr. 
NADLER, Mr. ISRAEL, Mr. MEEKS of New York, Ms. HERSETH, Mr. 
BROWN of Ohio, Mr. BOYD, Mr. LINDER, Mrs. DAVIS of California, Mr. 
FRANKS of Arizona, Mr. DAVIS of Alabama, Mr. BISHOP of Georgia, Mrs. 
BONO, Mrs. KELLY, Mrs. TAUSCHER, Mr. CRENSHAW, Mrs. NORTHUP, 
Ms. CORRINE BROWN of Florida, Mr. CARDIN, Mr. FILNER, Mr. BROWN 
of South Carolina, Mr. CALVERT, Mrs. MYRICK, Mr. CARDOZA, Mr. 
LANGEVIN, Mr. SMITH of New Jersey, Mr. WILSON of South Carolina, 
Mr. GERLACH, Ms. DELAURO, Mr. DAVIS of Kentucky, Mr. GONZALEZ, 
Mr. ROSS, Mr. KIRK, Mr. SHAYS, Mr. SAXTON, Ms. LINDA T. SA´NCHEZ 
of California, Mr. BLUMENAUER, Mr. TOWNS, Mr. STUPAK, Mr. 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
MELANCON, Mr. SALAZAR, Mr. BOSWELL, Mr. EMANUEL, Mr. PETERSON 
of Minnesota, Ms. HARMAN, Mr. MICHAUD, Mr. SCHIFF, Mrs. LOWEY, 
Ms. WATSON, Mr. HASTINGS of Florida, Mr. SHIMKUS, Mr. WYNN, and 
Mr. LEWIS of Georgia 
JUNE 29, 2006 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To establish a grant program to fund eligible joint ventures 
between United States and Israeli businesses and aca-
demic persons, to establish the International Energy Ad-
visory Board, and for other purposes. 
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-Israel 
Energy Cooperation Act’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
(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 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
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 
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-
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
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 
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 United States-Israel Binational 
Agricultural Research and Development Fund 
(BARD); and 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(C) the United States-Israel 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-
cerning Energy Cooperation, to establish a frame-
work for collaboration between the United States 
and Israel in energy research and development ac-
tivities; 
(14) Israeli scientists and researchers have long 
been at the forefront of research and development in 
the field of alternative renewable energy sources; 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(15) 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; 
(16) 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; 
(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 
(17) cooperation between the United States and 
Israel in the field of research and development of al-
ternative renewable energy sources would be in the 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
interests of both countries, and both countries stand 
to gain much from such cooperation. 
SEC. 3. GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the BIRD or BSF, shall establish a grant pro-
gram to award grants to eligible entities. 
(b) APPLICATION.— 
(1) SUBMISSION OF APPLICATIONS.—To receive 
a grant under this section, an eligible entity shall 
submit an application to the Secretary, in consulta-
tion with the BIRD or BSF, containing such infor-
mation and assurances as the Secretary 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.— 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(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 
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— 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(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 Act. 
(f) 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. INTERNATIONAL ENERGY ADVISORY BOARD. 
(a) ESTABLISHMENT.—There is established in the 
Department of Energy an International Energy Advisory 
Board. 
(b) DUTIES.—The Advisory Board shall advise the 
Secretary on— 
(1) criteria for the recipients of grants awarded 
under the grant program established under section 
4(a); 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(2) the total amount of grant money to be 
awarded to all grantees selected by the Secretary, in 
consultation with the BIRD; and 
(3) the total amount of grant money to be 
awarded to all grantees selected by the Secretary, in 
consultation with the BSF, for each fiscal year. 
(c) MEMBERSHIP.— 
(1) COMPOSITION.—The Advisory Board shall 
be composed of— 
(A) 1 member appointed by the Secretary 
of Commerce; 
(B) 1 member appointed by the Secretary 
of Energy; and 
(C) 2 members who shall be Israeli citi-
zens, appointed by the Secretary of Energy 
after consultation with appropriate officials in 
the Israeli Government. 
(2) DEADLINE FOR APPOINTMENTS.—The ini-
tial appointments under paragraph (1) shall be 
made not later than 60 days after the date of enact-
ment of this Act. 
(3) TERM.—Each member of the Advisory 
Board shall be appointed for a term of 4 years. 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(4) VACANCIES.—A vacancy on the Advisory 
Board shall be filled in the manner in which the 
original appointment was made. 
(5) BASIC PAY.— 
(A) COMPENSATION.—A member of the 
Advisory Board shall serve without pay. 
(B) TRAVEL EXPENSES.—Each member of 
the Advisory Board shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with applicable provisions of 
subchapter I of chapter 57 of title 5, United 
States Code. 
(6) QUORUM.—Three members of the Advisory 
Board shall constitute a quorum. 
(7) CHAIRPERSON.—The Chairperson of the 
Advisory Board shall be designated by the Secretary 
of Energy at the time of the appointment. 
(8) MEETINGS.—The Advisory Board shall 
meet at least once annually at the call of the Chair-
person. 
(d) TERMINATION.—Section 14(a)(2)(B) of the Fed-
eral Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Advisory Board. 
SEC. 5. DEFINITIONS. 
In this Act: 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(1) ADVISORY
BOARD.—The term ‘‘Advisory 
Board’’ means the International Energy Advisory 
Board established by section 4(a). 
(2) BIRD.—The term ‘‘BIRD’’ means the 
United States-Israel Binational Industrial Research 
and Development Foundation. 
(3) BSF.—The term ‘‘BSF’’ means the United 
States-Israel Binational Science Foundation. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a joint venture comprised of both Israeli 
and United States private business entities or a joint 
venture comprised of both Israeli academic persons 
(who reside and work in Israel) and United States 
academic persons, that— 
(A) carries out an eligible project; and 
(B) is selected by the Secretary, in con-
sultation with the BIRD or BSF, using the cri-
teria established by the Secretary, in consulta-
tion with the Advisory Board. 
(5) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means a project to encourage cooperation 
between the United States and Israel on research, 
development, or commercialization of alternative en-
ergy, improved energy efficiency, or renewable en-
ergy sources. 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy, acting through the Assist-
ant Secretary of Energy for Energy Efficiency and 
Renewable Energy. 
SEC. 6. TERMINATION. 
The grant program established under section 3 and 
the Advisory Board shall terminate upon the expiration 
of the 7-year period which begins on the date of the enact-
ment of this Act. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this Act $20,000,000 for each of fiscal years 2006 through 
2012. 
SEC. 8. CONSTITUTIONAL AUTHORITY. 
The Constitutional authority on which this Act rests 
is the power of Congress to make all laws which shall be 
necessary and proper as enumerated in Article I, Section 
8 of the United States Constitution. 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS
Union Calendar No. 305 
109TH CONGRESS 
2D SESSION 
H. R. 2730 
[Report No. 109–543] 
A BILL 
To establish a grant program to fund eligible joint 
ventures between United States and Israeli busi-
nesses and academic persons, to establish the 
International Energy Advisory Board, and for 
other purposes. 
JUNE 29, 2006 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
VerDate Aug 31 2005 
04:02 Jun 30, 2006
Jkt 049200
PO 00000
Frm 00014
Fmt 6651
Sfmt 6651
E:\BILLS\H2730.RH
H2730
ccoleman on PROD1PC71 with BILLS