[DOCID: f:sr162.110]
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Calendar No. 360
110th Congress Report
SENATE
1st Session 110-162
======================================================================
ENERGY TECHNOLOGY TRANSFER ACT
_______
September 17, 2007.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 85]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 85) to provide for the establishment of
centers to encourage demonstration and commercial application
of advanced energy methods and technologies, having considered
the same, reports favorably thereon without amendment and
recommends that the Act do pass.
Purpose of the Measure
The purpose of H.R. 85 is to amend section 917 of the
Energy Policy Act of 2005 (42 U.S.C. 16197) to give the
Secretary of Energy additional direction in making grants to
Advanced Energy Efficiency Technology Transfer Centers.
Background and Need
Section 917 of the Energy Policy Act of 2005 directs the
Secretary of Energy to make grants to nonprofit institutions,
state and local governments, or universities to establish a
geographically dispersed network of Advanced Energy Efficiency
Technology Transfer Centers. The purpose of the Centers is to
encourage demonstration and commercial application of advanced
energy efficiency methods and technologies through education
and outreach to building and industrial professionals, and to
other individuals and organizations interested in energy
efficiency.
As enacted, section 917 gives little guidance to the
Secretary on awarding grants, the activities for which Centers
may use grants, the contents of grant applications, selection
criteria, and the duration of grants. In addition, section 917
limits the scope of the program to the transfer of advanced
energy efficiency technology, and the section is unclear on
whether it permits the Secretary to make grants to existing
community outreach networks, such as the Cooperative Extension
System.
H.R. 85 is needed to improve the Advanced Energy Efficiency
Technology Transfer Center program, by expanding it to all
advanced energy technology transfer, including cooperative
extension services in the list of eligible grant recipients,
providing additional criteria for the Secretary to consider in
awarding grants, and establishing new requirements and
restrictions on grant recipients. In addition, H.R. 85 is
needed to eliminate an unnecessary advisiory committee
authorized by section 917.
Legislative History
H.R. 85 was introduced in the House of Representatives by
Congresswoman Biggert. The Committee on Science and Technology
ordered it reported, with an amendment in the nature of a
substitute on February 28, 2007. The House passed it, 395-1, on
March 12, 2007.
The Subcommittee on Energy of the Committee on Energy and
Natural Resources held a legislative hearing on H.R. 85 on May
22, 2007. The Committee on Energy and Natural Resources ordered
the bill favorably reported, without amendment, on July 25,
2007.
Committee Recommendation
The Committee on Energy and Natural Resources, in open
business session on July 25, 2007, by a voice vote of a quorum
present, recommends that the Senate pass H.R. 85.
Section-by-Section Analysis
Section 1 designates ``the Energy Technology Transfer Act''
as the short title.
Section 2 amends section 917 of the Energy Policy Act of
2005.
Section 917(a) authorizes the Secretary of Energy to make
grants to nonprofit institutions, State and local governments,
cooperative extension services, or institutions of higher
education (or consortia thereof), to establish a geographically
dispersed network of Advanced Energy Efficiency Technology
Centers. As originally enacted, subsection (a) required the
Secretary to begin making grants within 18 months after the
date of enactment of the Energy Policy Act of 2005 (August 8,
2005), did not include cooperative extension services in the
list of institutions eligible to receive grants, and required
the Secretary to consider the special needs and opportunites
for increased energy efficiency for manufactured and site-built
housing. As amended, subsection (a) requires the Secretary to
begin making grants within 18 months after the date of
enactment of H.R. 85, includes cooperative extension services
in the list of eligible institutions, and directs the Secretary
to give priority to applicants already operating or partnered
with an outreach program capable of transferring knowledge and
information about advanced energy efficiency technology, to
ensure that the program enables the transfer of knowledge about
a variety of technologies in a variety of geographical areas,
and to give preference to applicants that would significantly
expand or fill a gap in existing energy technology transfer
programs.
Section 917(b) provides that each Advanced Energy
Efficiency Technology Transfer Center shall operate a program
to encourage demonstration and commercial application of
advanced energy methods and technologies through education and
outreach to building and industrial professionals, and to other
individuals and organizations with an interest in efficent
energy use. As amended, subsection (b) lists 6 specific
activities for which funds awarded under section 917 may be
used. Permissible activities under subsection (b), as amended,
include developing and distributing materials on energy
conservation technologies, carrying out demonstrations,
developing and conducting seminars and other learning
activities, providing onsite energy evaluations, examining
energy efficiency needs of energy end-users to develop research
projects for the Department of Energy, and hiring experts to
carry out these activities.
Section 917(c) requires a person seeking a grant to submit
an application to the Secretary. As amended, subsection (c)
lists the minimum contents of an application. It requires
applicants to describe their outreach programs, geographical
areas of service, their technology transfer capabilities, the
activities they plan to carry out, why these activities fit
their regions, the number and types of energy users they expect
to reach, and how they will assess success of the program.
Section 917(d) sets out the selection criteria the
Secretary is to use to award grants. As originally enacted,
subsection (d) required to the Secretary to consider the
ability of the applicant to carry out the proposed activities
and the extent to which the applicant will coordinate the
activities of the Center with other entities. As amended,
subsection (d) also requires the Secretary to consider the
appropriateness of the applicant's outreach program and the
likelihood that the proposed activities could be expanded or
used as a model for other areas.
Section 917(e) provides that the cost sharing requirements
of section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352) apply to grants awarded under section 917.
Section 917(f) provides that grants shall be awarded for
five years. In the third year of operation the grantees are to
be evaluated by the Department of Energy. If the evaluation is
unsatisfactory, the grant is to be terminated. If the
evaluation is positive, the grant may be extended for an
additional three years and if a later evaluation is positive,
the grant may be extended for a final three years.
Section 917(g) forbids the use of funds under this section
for construction of facilities.
Section 917(h) defines the terms Advanced Energy Methods
and Technologies, Center, Distributed Generation, Cooperative
Extension, and Land-Grant Colleges and Universities.
Section 917(i) authorizes such sums as may be appropriated
to carry out section 917.
Cost and Budget Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
August 15, 2007.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 85, the Energy
Technology Transfer Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 85--Energy Technology Transfer Act
H.R. 85 would amend a provision of the Energy Policy Act of
2005 that authorizes the Department of Energy (DOE) to provide
grants to state and local governments, nonprofit organizations,
and institutions of higher learning for purposes of educating
the public about energy-efficient technologies. H.R. 85 would
specify additional criteria for DOE to consider in awarding
such grants and would establish new requirements for recipients
of those grants.
Based on information from DOE, CBO estimates that
implementing H.R. 85 would not significantly affect the federal
budget. We expect that any change in the value of grants
awarded under the legislation or the agency's costs to
administer them would not exceed $500,000 annually, assuming
the availability of appropriated funds. Enacting H.R. 85 would
not affect direct spending or revenues.
H.R. 85 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
On March 7, 2007, CBO transmitted a cost estimate for H.R.
85 as ordered reported by the House Committee on Science and
Technology on February 28, 2007. The two versions of H.R. 85
are similar, and our cost estimates are the same.
The CBO staff contact for this estimate is Megan Carroll.
This estimate was approved by Peter H. Fontaine, Assistant
Director for Budget Analysis.
Regulatory Impact
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 85.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
The Secretary may need to collect some personal information
from grant applicants. The Committee expects the Secretary to
limit the collection of personal information to the minimum
amount needed to adequately administer the programs, and
therefore anticipates little impact on personal privacy.
Enactment of H.R. 85 will result in the production of
various applications, reports, and performance assessments
necessary to the administration of the various programs
authorized by the bill. Again, the Committee expects the
Secretary to limit paperwork requirements to the minimum amount
needed to adequately administer the program.
Executive Communication
At a legislative hearing before the Committee on Energy and
Natural Resources on May 22, 2007, the Department of Energy
provided the following testimony on H.R. 85:
Statement of David R. Hill, General Counsel, Department of Energy
Chairman Dorgan, Senator Murkowski, and members of the
Committee, my name is David Hill and I am the General Counsel
of the U.S. Department of Energy (Department or DOE). I want to
thank you for the opportunity to appear today and offer
preliminary comments on five energy-related bills that the
Congress is considering. The bills before the Committee today
each make valuable contributions to our national discussion on
energy security, but in some cases could benefit from further
review, discussion and modification. The Department looks
forward to working with the Committee to resolve these issues.
I would like to discuss the elements of each bill, as well as
present some of the DOE activities that are already underway in
areas addressed by the bills.
* * * * * * *
h.r. 85
Turning to H.R. 85, this bill targets the demonstration and
commercial application of advanced energy methods and
technologies, a goal that effectively summarizes what we as a
nation must do to successfully move innovative products and
processes from the laboratory into everyday use. This bill
amends Section 917 of the Energy Policy Act of 2005 (EPACT),
which established advanced Energy Efficiency Technology
Transfer Centers. EERE recently announced a solicitation under
Section 917. It is our belief that extension services, which
are added here, already can participate in the Centers. In
addition, there are some technical issues which require further
review and discussion, and we look forward to working with the
Committee to resolve these minor concerns.
The Department also is addressing the challenge of
successful technology transfer by, among other things,
supporting a robust and widespread regional and local outreach
effort to ensure the adoption and commercial application of
industrial and building energy system technologies and
practices. For example, in coordination with the Department
Golden Field Office, we are instituting a new method of project
management, called Stage Gating that incorporates the
demonstration of technologies in the last stage of Federal
development as part of deployment/technology transfer for
commercialization. Through our Industrial Technologies Program,
EERE works through Congressionally established Industrial
Assessment Centers to provide energy evaluations and to help
deploy advanced energy methods and technologies to small and
medium-sized companies. Recently we have broadened this effort
by establishing a Memorandum of Understanding (MOU) with the
Manufacturing Extension Partnership (MEP) program of the
Department of Commerce National Institute of Science and
Technology (NIST). The MEP program consists of 59 main centers
across the Nation, and will significantly increase our ability
to deploy advanced energy methods and technologies to thousands
of manufacturing facilities and buildings.
EERE is currently establishing working relationships with
the various types of centers I have mentioned to coordinate the
demonstration and application of advanced energy methods and
technologies. Key to this coordinated effort will be the
integration of deployment activities with EERE state
partnerships. Any kind of regionally focused efforts would need
state involvement to leverage state-sponsored energy programs.
Thus, given the activity level already underway with a
broad range of centers, it would not seem that the
establishment of the additional centers would be needed. There
is much to work with to advance our technology transfer goals,
and our focus at the Department is on the successful support,
use, and coordination of our tools at hand.
* * * * * * *
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill H.R. 85, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
THE ENERGY POLICY ACT OF 2005
Public Law 109-58--Aug. 8, 2005
AN ACT To ensure jobs for our future with secure, affordable, and
reliable energy.
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle A--Energy Efficiency
* * * * * * *
[SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.
[(a) Grants.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall make grants to
nonprofit institutions, State and local governments, or
universities (or consortia thereof), to establish a
geographically dispersed network of Advanced Energy Efficiency
Technology Transfer Centers, to be located in areas the
Secretary determines have the greatest need of the services of
such Centers. In establishing the network, the Secretary shall
consider the special needs and opportunities for increased
energy efficiency for manufactured and site-built housing.
[(b) Activities.--
[(1) In general.--Each Center shall operate a program
to encourage demonstration and commercial application
of advanced energy methods and technologies through
education and outreach to building and industrial
professionals, and to other individuals and
organizations with an interest in efficient energy use.
[(2) Advisory panel.--Each Center shall establish an
advisory panel to advise the Center on how best to
accomplish the activities under paragraph (1).
[(c) Application.--A person seeking a grant under this
section shall submit to the Secretary an application in such
form and containing such information as the Secretary may
require. The Secretary may award a grant under this section to
an entity already in existence if the entity is otherwise
eligible under this section.
[(d) Selection Criteria.--The Secretary shall award grants
under this section on the basis of the following criteria, at a
minimum:
[(1) The ability of the applicant to carry out the
activities described in subsection (b)(1).
[(2) The extent to which the applicant will
coordinate the activities of the Center with other
entities, such as State and local governments,
utilities, and educational and research institutions.
[(e) Cost-Sharing.--In carrying out this section, the
Secretary shall require cost-sharing in accordance with the
requirements of section 988 for commercial application
activities.
[(f) Advisory Committee.--The Secretary shall establish an
advisory committee to advise the Secretary on the establishment
of Centers under this section. The advisory committee shall be
composed of individuals with expertise in the area of advanced
energy methods and technologies, including at least one
representative from--
[(1) State or local energy offices;
[(2) energy professionals;
[(3) trade or professional associations;
[(4) architects, engineers, or construction
professionals;
[(5) manufacturers;
[(6) the research community; and
[(7) nonprofit energy or environmental organizations.
[(g) Definitions.--For purposes of this section:
[(1) Advanced energy methods and technologies.--The
term ``advanced energy methods and technologies'' means
all methods and technologies that promote energy
efficiency and conservation, including distributed
generation technologies, and life-cycle analysis of
energy use.
[(2) Center.--The term ``Center'' means an Advanced
Energy Technology Transfer Center established pursuant
to this section.
[(3) Distributed generation.--The term ``distributed
generation'' means an electric power generation
facility that is designed to serve retail electric
consumers at or near the facility site.
[(h) Authorization of Appropriations.--In addition to
amounts otherwise authorized to be appropriated in section 911,
there are authorized to be appropriated for the program under
this section such sums as may be appropriated.]
SEC. 917. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.
(a) Grants.--Not later than 18 months after the date of
enactment of the Energy Technology Transfer Act, the Secretary
shall make grants to nonprofit institutions, State and local
governments, cooperative extension services, or institutions of
higher education (or consortia thereof), to establish a
geographically dispersed network of Advanced Energy Technology
Transfer Centers, to be located in areas the Secretary
determines have the greatest need of the services of such
Centers. In making awards under this section, the Secretary
shall--
(1) give priority to applicants already operating or
partnered with an outreach program capable of
transferring knowledge and information about advanced
energy efficiency methods and technologies;
(2) ensure that, to the extent practicable, the
program enables the transfer of knowledge and
information--
(A) about a variety of technologies and
(B) in a variety of geographic areas;
(3) give preference to applicants that would
significantly expand on or fill a gap in existing
programs in a geographical region; and
(4) consider the special needs and opportunities for
increased energy efficiency for manufactured and site-
built housing, including construction, renovation, and
retrofit.
(b) Activities.--Each Center shall operate a program to
encourage demonstration and commercial application of advanced
energy methods and technologies through education and outreach
to building and industrial professionals, and to other
individuals and organizations with an interest in efficient
energy use. Funds awarded under this section may be used for
the following activities:
(1) Developing and distributing informational
materials on technologies that could use energy more
efficiently.
(2) Carrying out demonstrations of advanced energy
methods and technologies.
(3) Developing and conducting seminars, workshops,
long-distance learning sessions, and other activities
to aid in the dissemination of knowledge and
information on technologies that could use energy more
efficiently.
(4) Providing or coordinating onsite energy
evaluations, including instruction on the commissioning
of building heating and cooling systems, for a wide
range of energy end-users.
(5) Examining the energy efficiency needs of energy
end-users to develop recommended research projects for
the Department.
(6) Hiring experts in energy efficient technologies
to carry out activities described in paragraphs (1)
through (5).
(c) Application.--A person seeking a grant under this
section shall submit to the Secretary an application in such
form and containing such information as the Secretary may
require. The Secretary may award a grant under this section to
an entity already in existence if the entity is otherwise
eligible under this section. The application shall include, at
a minimum--
(1) a description of the applicant's outreach
program, and the geographic region it would serve, and
of why the program would be capable of transferring
knowledge and information about advanced energy
technologies that increase efficiency of energy use;
(2) a description of the activities the applicant
would carry out, of the technologies that would be
transferred, and of any other organizations that will
help facilitate a regional approach to carrying out
those activities;
(3) a description of how the proposed activities
would be appropriate to the specific energy needs of
the geographic region to be served;
(4) an estimate of the number and types of energy
end-users expected to be reached through such
activities; and
(5) a description of how the applicant will assess
the success of the program.
(d) Selection Criteria.--The Secretary shall award grants
under this section on the basis of the following criteria, at a
minimum:
(1) The ability of the applicant to carry out the
proposed activities.
(2) The extent to which the applicant will coordinate
the activities of the Center with other entities as
appropriate, such as State and local governments,
utilities, institutions of higher education, and
National Laboratories.
(3) The appropriateness of the applicant's outreach
program for carrying out the program described in this
section.
(4) The likelihood that proposed activities could be
expanded or used as a model for other areas.
(e) Cost-Sharing.--In carrying out this section, the
Secretary shall require cost-sharing in accordance with the
requirements of section 988 for commercial application
activities.
(f) Duration.--
(1) Initial grant period.--A grant awarded under this
section shall be for a period of 5 years.
(2) Initial evaluation.--Each grantee under this
section shall be evaluated during its third year of
operation under procedures established by the Secretary
to determine if the grantee is accomplishing the
purposes of this section described in subsection (a).
The Secretary shall terminate any grant that does not
receive a positive evaluation. If an evaluation is
positive, the Secretary may extend the grant for 3
additional years beyond the original term of the grant.
(3) Additional extension.--If a grantee receives an
extension under paragraph (2), the grantee shall be
evaluated again during the second year of the
extension. The Secretary shall terminate any grant that
does not receive a positive evaluation. If an
evaluation is positive, the Secretary may extend the
grant for a final additional period of 3 additional
years beyond the original extension.
(4) Limitation.--No grantee may receive more than 11
years of support under this section without reapplying
for support and competing against all other applicants
seeking a grant at that time.
(g) Prohibition.--None of the funds awarded under this
section may be used for the construction of facilities.
(h) Definitions.--For purposes of this section:
(1) Advanced energy methods and technologies.--The
term ``advanced energy methods and technologies'' means
all methods and technologies that promote energy
efficiency and conservation, including distributed
generation technologies, and life-cycle analysis of
energy use.
(2) Center.--The term ``Center'' means an Advanced
Energy Technology Transfer Center established pursuant
to this section.
(3) Distributed generation.--The term ``distributed
generation'' means an electric power generation
technology, including photovoltaic, small wind, and
micro-combined heat and power, that serves electric
consumers at or near the site of production.
(4) Cooperative extension.--The term ``Cooperative
Extension'' means the extension services established at
the land-grant colleges and universities under the
Smith-Lever Act of May 8, 1914.
(5) Land-grant colleges and universities.--The term
``land-grant colleges and universities'' means--
(A) 1862 Institutions (as defined in section
2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601));
(B) 1890 Institutions (as defined in section
2 of that Act); and
(C) 1994 Institutions (as defined in section
2 of that Act).
(i) Authorization of Appropriations.--In addition to
amounts otherwise authorized to be appropriated in section 911,
there are authorized to be appropriated for the program under
this section such sums as may be appropriated.
* * * * * * *
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