(d) COST SHARING.—The Federal share of the costs 
of a project for which a grant is made under this section 
shall not exceed 15 percent. 
SEC. 6. PRIZE PROGRAM. 
(a) PRIZE AUTHORITY.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall carry out a program to competitively award 
cash prizes in conformity with this section to ad-
vance the research, development, demonstration, and 
commercial application necessary to achieve the 
goals described in section 3. 
(2) ADVERTISING AND SOLICITATION OF COM-
PETITORS.— 
(A) ADVERTISING.—The Secretary shall 
widely advertise prize competitions under this 
section to encourage broad participation by re-
searchers, large and small businesses, institu-
tions of higher education, and any other quali-
fied applicants, including veterans. 
(B) ANNOUNCEMENT THROUGH FEDERAL 
REGISTER
NOTICE.—The Secretary shall an-
nounce each prize competition under this sec-
tion by publishing a notice in the Federal Reg-
ister. This notice shall include essential ele-
ments of the competition such as the subject of 
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the competition, the duration of the competi-
tion, the eligibility requirements for participa-
tion in the competition, the process for partici-
pants to register for the competition, the 
amount of the prize, and the criteria for award-
ing the prize, which shall include, at a min-
imum, the achievement of one of the goals de-
scribed in section 3. 
(3) ANNOUNCEMENT
OF
PRIZES.—The Sec-
retary may not issue a notice required by paragraph 
(2)(B) until all the funds needed to pay out the an-
nounced amount of the prize have been appro-
priated. 
(b) PRIZE CATEGORIES.— 
(1) CATEGORIES.—The Secretary of Energy 
shall establish a single prize under this section for 
each of the goals described in paragraphs (1) 
through (7) of section 3. 
(2) CRITERIA.—In establishing the criteria re-
quired by this section, the Secretary— 
(A) shall consult with other Federal agen-
cies, including the National Science Founda-
tion; and 
(B) may consult with other experts such as 
private organizations, including professional so-
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cieties, industry associations, and the National 
Academy of Sciences and the National Academy 
of Engineering. 
(c) ELIGIBILITY.—To be eligible to win a prize under 
this section, an individual or entity— 
(1) shall have complied with all the require-
ments in accordance with the Federal Register no-
tice required under subsection (a)(2)(B); 
(2) in the case of a private entity, shall be in-
corporated in and maintain a primary place of busi-
ness in the United States, and in the case of an in-
dividual, whether participating singly or in a group, 
shall be a citizen of, or an alien lawfully admitted 
for permanent residence in, the United States; and 
(3) shall not be a Federal entity, a Federal em-
ployee acting within the scope of his employment, or 
an employee of a national laboratory acting within 
the scope of his employment. 
(d) AWARD SELECTION.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall award prizes under this section on the basis of 
the criteria published in the notice required under 
subsection (a)(2)(B), after receiving the rec-
ommendations of the Commission under section 
7(b)(3). 
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(2) CONGRESSIONAL
NOTIFICATION.—If the 
Secretary awards a prize under paragraph (1) in a 
manner that does not conform to the recommenda-
tions of the Commission, the Secretary shall trans-
mit a report to the Congress explaining the reasons 
for such action. 
(e) INTELLECTUAL PROPERTY.—The Federal Gov-
ernment shall not, by virtue of offering or awarding a 
prize under this section, be entitled to any intellectual 
property rights derived as a consequence of, or direct rela-
tion to, the participation by a registered participant in a 
competition authorized by this section. This subsection 
shall not be construed to prevent the Federal Government 
from negotiating a license for the use of intellectual prop-
erty developed for a prize competition under this section. 
(f) LIABILITY.— 
(1) WAIVER OF LIABILITY.—The Secretary of 
Energy may require registered participants to waive 
claims against the Federal Government (except 
claims for willful misconduct) for any injury, death, 
damage, or loss of property, revenue, or profits aris-
ing from the registered participants’ participation in 
a competition under this section. The Secretary shall 
give notice of any waiver required under this para-
graph in the notice required by subsection (a)(2)(B). 
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(2) LIABILITY INSURANCE.— 
(A) REQUIREMENTS.—Registered partici-
pants in a prize competition under this section 
shall be required to obtain liability insurance or 
demonstrate financial responsibility, in amounts 
determined by the Secretary, for claims by— 
(i) a third party for death, bodily in-
jury, or property damage or loss resulting 
from an activity carried out in connection 
with participation in a competition under 
this section; and 
(ii) the Federal Government for dam-
age or loss to Government property result-
ing from such an activity. 
(B) FEDERAL
GOVERNMENT
INSURED.— 
The Federal Government shall be named as an 
additional insured under a registered partici-
pant’s insurance policy required under subpara-
graph (A) with respect to claims described in 
clause (i) of that subparagraph, and registered 
participants shall be required to agree to in-
demnify the Federal Government against third 
party claims for damages arising from or re-
lated to competition activities under this sec-
tion. 
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