[Congressional Record Volume 151, Number 37 (Tuesday, April 5, 2005)]
[Senate]
[Pages S3217-S3220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself, Ms. Murkowski, and Mr. Stevens):
  S. 711. A bill to amend the Methane Hydrate Research and Development 
Act of 2000 to reauthorize that Act and to promote the research, 
identification, assessment, exploration, and development of methane 
hydrate resources; to the Committee on Energy and Natural Resources.
  Mr. AKAKA. Mr. President, I rise today to introduce a bill to re-
authorize a critical program for our energy future. It is widely 
believed that the U.S. must diversify its energy portfolio and explore 
new domestic sources and technologies for energy to curb our dependence 
on foreign oil. As a senior member of the Committee on Energy and 
Natural Resources, I know we have

[[Page S3218]]

been assessing the potential for a variety of energy sources for the 
future including natural gas, clean coal technology, nuclear energy, 
renewable energy, and others. This bill, the Methane Hydrate Research 
and Development Reauthorization Act of 2005, will reauthorize a small 
but important program on methane hydrate research and development, a 
key and abundant non-conventional source of energy.
  I would like to extend my appreciation to my cosponsors, Senators 
Murkowski and Stevens, who share my interest and determination in 
exploring the potential of methane hydrates for energy production. We 
share a common goal to see that we fully understand the prospects for 
this domestic energy resource. This new legislation will foster the 
research and development needed to expand our knowledge to better 
assess both the opportunities and challenges this potential energy 
resource presents. Our legislation provides for a higher level of 
scientific research and partnering between government agencies, 
academic institutions, and industry.
  The United States and the world will require substantially increased 
quantities of natural gas, electricity, and transportation fuels over 
the next 20 years. Global competition for tightening supplies of oil 
and natural gas with emerging economies such as China and India will 
drive energy prices higher, and makes it apparent that the United 
States needs to capitalize upon its domestic energy resources. The 
United States must continue to diversify and expand the Nation's access 
to natural gas supplies through continuing research and development 
efforts in technologies for tapping non-conventional natural gas 
supplies, such as methane hydrates.
  Methane hydrates were discovered in the 1960s and consist of methane 
gas trapped in lattice-like ice. They are found largely in ocean bottom 
sediments lying below 450 meters and in permafrost. There are several 
published estimates of the total amount of methane stored in gas 
hydrates worldwide. These estimates vary. However, it is widely 
believed that there is more energy potentially stored in methane 
hydrates than in all other known fossil fuel reserves, combined. The 
National Commission on Energy Policy's December 2004 report, Ending the 
Energy Stalemate--A Bipartisan Strategy To Meet America's Energy 
Challenges, estimated that the United States could possess one quarter 
of the world's supply of methane hydrates.
  The United States will consume increasing volumes of natural gas well 
into the 21st century. United States natural gas consumption is 
expected to increase from approximately 22 trillion cubic feet in 2003 
to more than 32 trillion cubic feet in 2020--a projected increase of 40 
percent. Natural gas is expected to take on a greater role in power 
generation, largely because of the increasing demand for clean fuels 
and the relatively low capital costs of building new natural gas-fired 
power equipment. The National Commission on Energy Policy reported that 
the United States resource base may contain up to two hundred thousand 
trillion cubic feet of methane, onshore in the Alaskan permafrost, and 
offshore on much of the Nation's deep continental shelf. If even one 
percent of the estimated domestic resource base proves commercially 
viable, it would roughly double the Nation's technically recoverable 
natural gas reserves, according to the Department of Energy's Office of 
Fossil Energy.
  Given the growing demand for natural gas, the development of new, 
cost-effective supplies can play a major role in moderating price 
increases and ensuring consumer confidence in the long-term 
availability of reliable, affordable fuel. Today, the potential to 
extract commercially-relevant quantities of natural gas from hydrates 
is not yet viable. With no incentive to fund its own research and 
development, the private sector is not vigorously pursuing the research 
currently needed that could make methane hydrates technically and 
economically viable. Therefore, cooperation between the federal 
government and private industry remains the best effort in which the 
United States can explore the viability of an energy resource whose 
long-range possibilities might one day dramatically change the world's 
energy portfolio.
  Uncertainties exist regarding the nature of these deposits and, in 
particular, how best to extract the enormous quantity of natural gas 
they contain in an economic and environmentally sensitive manner. 
However, some alternatives are worse. For example, transporting natural 
gas from foreign gas fields to the United States by shipping it in 
liquid form at negative 162 degrees Celsius is an expensive undertaking 
and one that is attractive to terrorists. Methane hydrates, on the 
other hand, can be found domestically, in Alaska and the Gulf of 
Mexico, and with our ally to the north, Canada. Hydrates are likely to 
provide commercially viable natural gas supplies by 2025. Their long 
term potential to meet United States energy demands for natural gas is 
considerable.
  The Methane Hydrate Research Act of 2000 invigorated methane hydrate 
research in the United States. The act also mandated that the National 
Research Council study the program initiated by the act and to make 
recommendations for future research and development needs. Without a 
doubt, the National Research Council concluded in its 2004 report, 
Charting the Future of Methane Hydrate Research in the United States, 
that the U.S. must continue its investment in hydrates research and 
development because of the size of the resource. Furthermore, the 
report commended the program's excellent coordination and cooperation 
between federal agencies, industry, and academia involved in methane 
hydrates research. The legislation I am introducing incorporates the 
recommendations of the National Research Council, and improves upon the 
act by requiring external scientific peer reviews, strengthening the 
advisory panel, broadening the field work proposals to include test 
wells, increasing the appropriations needed to conduct the research, 
and emphasizing the need to promote education and training in the field 
of methane hydrate research and resource development. The bill also 
incorporates comments from the Department of Energy.
  Mr. President, science and technology have and will continue to help 
us learn more about our world, and I believe, help us solve some of our 
toughest problems, not only domestically but globally. These are 
complex and significant problems relating to the impact of human 
activities on our environment, our heavy dependence on finite fossil 
fuels from sources that may not prove reliable, and limited energy 
supplies in the face of growing demands of expanding national economies 
that are increasingly intertwined in a global economic network. I 
believe the Federal Government must continue to foster the needed 
research and development in the field of methane hydrate research.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 711

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Methane Hydrate Research and 
     Development Reauthorization Act of 2005''.

     SEC. 2. METHANE HYDRATE RESEARCH AND DEVELOPMENT.

       The Methane Hydrate Research and Development Act of 2000 
     (30 U.S.C. 1902 note; Public Law 106-193) is amended to read 
     as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Methane Hydrate Research 
     and Development Act of 2000'.

     ``SEC. 2. FINDINGS.

       ``Congress finds that--
       ``(1) in order to promote energy independence and meet the 
     increasing demand for energy, the United States will require 
     a diversified portfolio of substantially increased quantities 
     of electricity, natural gas, and transportation fuels;
       ``(2) according to the report submitted to Congress by the 
     National Research Council entitled `Charting the Future of 
     Methane Hydrate Research in the United States', the total 
     United States resources of gas hydrates have been estimated 
     to be on the order of 200,000 trillion cubic feet;
       ``(3) according to the report of the National Commission on 
     Energy Policy entitled `Ending the Energy Stalemate - A 
     Bipartisan Strategy to Meet America's Energy Challenge', and 
     dated December 2004, the United States may be endowed with 
     over 1/4 of the methane hydrate deposits in the world;

[[Page S3219]]

       ``(4) according to the Energy Information Administration, a 
     shortfall in natural gas supply from conventional and 
     unconventional sources is expected to occur in or about 2020; 
     and
       ``(5) the National Academy of Science states that methane 
     hydrate may have the potential to alleviate the projected 
     shortfall in the natural gas supply.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Contract.--The term `contract' means a procurement 
     contract within the meaning of section 6303 of title 31, 
     United States Code.
       ``(2) Cooperative agreement.--The term `cooperative 
     agreement' means a cooperative agreement within the meaning 
     of section 6305 of title 31, United States Code.
       ``(3) Director.--The term `Director' means the Director of 
     the National Science Foundation.
       ``(4) Grant.--The term `grant' means a grant awarded under 
     a grant agreement (within the meaning of section 6304 of 
     title 31, United States Code).
       ``(5) Industrial enterprise.--The term `industrial 
     enterprise' means a private, nongovernmental enterprise that 
     has an expertise or capability that relates to methane 
     hydrate research and development.
       ``(6) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education (as defined in section 102 of the Higher 
     Education Act of 1965 (20 U.S.C. 1002)).
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Energy, acting through the Assistant Secretary for Fossil 
     Energy.
       ``(8) Secretary of commerce.--The term `Secretary of 
     Commerce' means the Secretary of Commerce, acting through the 
     Administrator of the National Oceanic and Atmospheric 
     Administration.
       ``(9) Secretary of defense.--The term `Secretary of 
     Defense' means the Secretary of Defense, acting through the 
     Secretary of the Navy.
       ``(10) Secretary of the interior.--The term `Secretary of 
     the Interior' means the Secretary of the Interior, acting 
     through the Director of the United States Geological Survey, 
     the Director of the Bureau of Land Management, and the 
     Director of the Minerals Management Service.

     ``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

       ``(a) In General.--
       ``(1) Commencement of program.--Not later than 90 days 
     after the date of the enactment of the Methane Hydrate 
     Research and Development Reauthorization Act of 2005, the 
     Secretary, in consultation with the Secretary of Commerce, 
     the Secretary of Defense, the Secretary of the Interior, and 
     the Director, shall commence a program of methane hydrate 
     research and development in accordance with this section.
       ``(2) Designations.--The Secretary, the Secretary of 
     Commerce, the Secretary of Defense, the Secretary of the 
     Interior, and the Director shall designate individuals to 
     carry out this section.
       ``(3) Coordination.--The individual designated by the 
     Secretary shall coordinate all activities within the 
     Department of Energy relating to methane hydrate research and 
     development.
       ``(4) Meetings.--The individuals designated under paragraph 
     (2) shall meet not later than 180 days after the date of the 
     enactment of the Methane Hydrate Research and Development 
     Reauthorization Act of 2005 and not less frequently than 
     every 180 days thereafter to--
       ``(A) review the progress of the program under paragraph 
     (1); and
       ``(B) coordinate interagency research and partnership 
     efforts in carrying out the program.
       ``(b) Grants, Contracts, Cooperative Agreements, 
     Interagency Funds Transfer Agreements, and Field Work 
     Proposals.--
       ``(1) Assistance and coordination.--In carrying out the 
     program of methane hydrate research and development 
     authorized by this section, the Secretary may award grants 
     to, or enter into contracts or cooperative agreements with, 
     institutions of higher education and industrial enterprises 
     to--
       ``(A) conduct basic and applied research to identify, 
     explore, assess, and develop methane hydrate as a 
     commercially viable source of energy;
       ``(B) identify methane hydrate resources through remote 
     sensing;
       ``(C) acquire and reprocess seismic data suitable for 
     characterizing methane hydrate accumulations;
       ``(D) assist in developing technologies required for 
     efficient and environmentally sound development of methane 
     hydrate resources;
       ``(E) promote education and training in methane hydrate 
     resource research and resource development through 
     fellowships or other means for graduate education and 
     training;
       ``(F) conduct basic and applied research to assess and 
     mitigate the environmental impact of hydrate degassing 
     (including both natural degassing and degassing associated 
     with commercial development);
       ``(G) develop technologies to reduce the risks of drilling 
     through methane hydrates; and
       ``(H) conduct exploratory drilling, well testing, and 
     production testing operations on permafrost and non-
     permafrost gas hydrates in support of the activities 
     authorized by this paragraph, including drilling of 1 or more 
     full-scale production test wells.
       ``(2) Competitive peer review.--Funds made available under 
     paragraph (1) shall be made available based on a competitive 
     process using external scientific peer review of proposed 
     research.
       ``(c) Methane Hydrates Advisory Panel.--
       ``(1) In general.--The Secretary shall establish an 
     advisory panel (including the hiring of appropriate staff) 
     consisting of representatives of industrial enterprises, 
     institutions of higher education, oceanographic institutions, 
     State agencies, and environmental organizations with 
     knowledge and expertise in the natural gas hydrates field, 
     to--
       ``(A) assist in developing recommendations and broad 
     programmatic priorities for the methane hydrate research and 
     development program carried out under subsection (a)(1);
       ``(B) provide scientific oversight for the methane hydrates 
     program, including assessing progress toward program goals, 
     evaluating program balance, and providing recommendations to 
     enhance the quality of the program over time; and
       ``(C) not later than 2 years after the date of the 
     enactment of the Methane Hydrate Research and Development 
     Reauthorization Act of 2005, and at such later dates as the 
     panel considers advisable, submit to Congress--
       ``(i) an assessment of the methane hydrate research 
     program; and
       ``(ii) an assessment of the 5-year research plan of the 
     Department of Energy.
       ``(2) Conflicts of interest.--In appointing each member of 
     the advisory panel established under paragraph (1), the 
     Secretary shall ensure, to the maximum extent practicable, 
     that the appointment of the member does not pose a conflict 
     of interest with respect to the duties of the member under 
     this Act.
       ``(3) Meetings.--The advisory panel shall--
       ``(A) hold the initial meeting of the advisory panel not 
     later than 180 days after the date of establishment of the 
     advisory panel; and
       ``(B) meet biennially thereafter.
       ``(4) Coordination.--The advisory panel shall coordinate 
     activities of the advisory panel with program managers of the 
     Department of Energy at appropriate national laboratories
       ``(d) Construction Costs.--None of the funds made available 
     to carry out this section may be used for the construction of 
     a new building or the acquisition, expansion, remodeling, or 
     alteration of an existing building (including site grading 
     and improvement and architect fees).
       ``(e) Responsibilities of the Secretary.--In carrying out 
     subsection (b)(1), the Secretary shall--
       ``(1) facilitate and develop partnerships among government, 
     industrial enterprises, and institutions of higher education 
     to research, identify, assess, and explore methane hydrate 
     resources;
       ``(2) undertake programs to develop basic information 
     necessary for promoting long-term interest in methane hydrate 
     resources as an energy source;
       ``(3) ensure that the data and information developed 
     through the program are accessible and widely disseminated as 
     needed and appropriate;
       ``(4) promote cooperation among agencies that are 
     developing technologies that may hold promise for methane 
     hydrate resource development;
       ``(5) report annually to Congress on the results of actions 
     taken to carry out this Act; and
       ``(6) ensure, to the maximum extent practicable, greater 
     participation by the Department of Energy in international 
     cooperative efforts.

     ``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

       ``(a) Agreement for Study.--The Secretary shall offer to 
     enter into an agreement with the National Research Council 
     under which the National Research Council shall--
       ``(1) conduct a study of the progress made under the 
     methane hydrate research and development program implemented 
     under this Act; and
       ``(2) make recommendations for future methane hydrate 
     research and development needs.
       ``(b) Report.--Not later than September 30, 2009, the 
     Secretary shall submit to Congress a report containing the 
     findings and recommendations of the National Research Council 
     under this section.

     ``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.

       ``The Secretary shall provide to the Committee on Science 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate copies of any report or 
     study that the Department of Energy prepares at the direction 
     of any committee of Congress.

     ``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Secretary 
     to carry out this Act, to remain available until expended--
       ``(1) $15,000,000 for fiscal year 2006;
       ``(2) $20,000,000 for fiscal year 2007;
       ``(3) $30,000,000 for fiscal year 2008;
       ``(4) $50,000,000 for fiscal year 2009; and
       ``(5) $50,000,000 for fiscal year 2010.''.

  Ms. MURKOWSKI. Mr. President, I am proud to come to the floor today 
to introduce legislation of vital importance to our Nation. Enactment 
of the Methane Hydrate Research and Development Reauthorization Act of 
2005

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will provide the authorizations necessary to unlock a potentially huge 
supply of domestic natural gas, enough gas to supply our Nation for 
generations.
  However, before I introduce this legislation, I would first like to 
thank my good friend and colleague, Senator Akaka, for his dedication 
to helping address our Nation's energy crisis through legislation that 
should dramatically increase our domestic supply of environmentally 
friendly, clean burning natural gas. Without Senator Akaka's hard work 
and focus on this issue we would not be introducing this legislation 
today.
  Mr. President, our Nation is facing an energy crisis. Oil and natural 
gas prices are at historic or near historic high levels. Oil prices are 
over $50 a barrel. Natural gas prices are over $7.00 a MMBtu. Indeed, 
United States natural gas prices have increased by almost 350 percent 
since 1998 and are currently the highest in the world. Despite this 
huge increase in cost, domestic natural gas production has declined by 
almost 5 percent and Canadian imports have declined by almost 25 
percent from 2001 to 2004. Estimates are that during the past 5 years 
United States natural gas consumers have paid nearly $200 billion more 
for natural gas than they paid in the preceding 5 years.
  These extraordinarily high natural gas prices are having a profound 
impact on every segment of our economy. Chairman Greenspan identified 
our current natural gas price and supply situation as a crisis that 
could have a devastating impact on the United States economy. In fact, 
estimates are that the natural gas crisis has significantly contributed 
to the loss of 2.5 million United States manufacturing jobs. Indeed, 
the ongoing ``demand destruction'' caused by current gas prices with 
its devastating impact on United States manufacturing will only 
continue unless we address the current natural gas supply shortage and 
high prices.
  Today, the United States produces about 22 trillion cubic feet of 
natural gas each year. By 2025, the Energy Information Administration 
estimates that United States natural gas consumption will reach 31 
trillion cubic feet. That's an increase of more than 40 percent. Much 
of the new electric generation that will come on line during the next 
two decades will require natural gas according to a study by the 
American Gas Foundation. Indeed, clean burning natural gas remains the 
premium fossil fuel for electric power generation.
  The EIA estimates that by 2025 the United States will produce only 
21.8 trillion cubic feet of natural gas meeting just 70 percent of the 
Nation's expected demand. Thus, absent securing a new domestic supply 
of gas, the United States will have to import 30 percent of its natural 
gas supply. We have already gone down this path with our petroleum 
supplies. We have witnessed the unacceptable national security, balance 
of payments and general economic consequences of this level of reliance 
on foreign sources for our nation's critical supply of oil. We must not 
repeat this reality with natural gas.
  This is why I am proud to introduce the Methane Hydrate Research and 
Development Reauthorization Act of 2005. As stated in the findings 
section of the legislation, the National Research Council has estimated 
the total United States methane hydrate resource base to be on the 
order of 200,000 trillion cubic feet. Alaska alone is thought to have 
potential hydrate resources of 32,000 trillion cubic feet. Indeed, a 
report issued by the National Commission on Energy Policy states that 
the United States may be endowed with over one-fourth of the methane 
hydrate deposits in the world. This is an immense supply of secure, 
domestic energy that could supply our country for many, many years.
  The Methane Hydrate Reauthorization Act of 2005 builds upon the 
success of the original Methane Hydrate Research and Development Act of 
2000. The new act incorporates certain changes to the 2000 legislation 
suggested by the National Research Council of the National Academies 
and the Department of Energy. The 2000 act established an advisory 
panel to advise the Secretary of Energy on potential applications of 
methane hydrate and to assist in developing recommendations and 
priorities for methane hydrate research and development programs. The 
new act strengthens the role of the advisory panel to ensure that the 
research funds are put to their most effective use. The 2005 act also 
increases the use of a scientific peer review process in determining 
which projects will be funded. Further, the new legislation directs the 
funding of fellowships and graduate education and training programs to 
establish a solid, scientific foundation of expertise in the United 
States on methane hydrates. Finally, the 2005 act authorizes increased 
funding for the methane hydrate program. The increased funding is 
critical in order to allow for the transition from a largely research 
oriented program to one that will foster the beginning of the 
commercialization of our Nation's methane hydrate resources.

  Again, I thank Senator Akaka and his staff for their hard work and 
commitment to this legislation that is so important to our nation's 
future.

                          ____________________