[Congressional Record (Bound Edition), Volume 152 (2006), Part 12]
[House]
[Pages 16013-16018]
[From the U.S. Government Publishing Office, www.gpo.gov]




              UNITED STATES-ISRAEL ENERGY COOPERATION ACT

  Mr. SHADEGG. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2730) 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, as amended.
  The Clerk read as follows:

                               H.R. 2730

       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 ``United States-Israel Energy 
     Cooperation Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) it is in the highest national security interests of the 
     United States to ensure secure access to reliable energy 
     sources;
       (2) the United States relies heavily on the foreign 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 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 manipulated 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 Administration 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-exporting nations;
       (7) for economic and national security reasons, the United 
     States should reduce, as soon as practicable, the dependence 
     of the United States on nations 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 creation of 
     Israel in 1948;
       (9) like the United States, Israel is a democracy that 
     holds civil rights and liberties in the highest regard 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 development, such as--
       (A) the United States-Israel Binational Science Foundation 
     (BSF);
       (B) the Israel-United States Binational Agricultural 
     Research and Development Fund (BARD); and
       (C) the Israel-United States Binational Industrial Research 
     and Development (BIRD) Foundation;
       (12) these programs, supported by the matching 
     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 others;
       (13) on February 1, 1996, United States Secretary of Energy 
     Hazel R. O'Leary and Israeli Minister 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 Concerning 
     Energy Cooperation, to establish a framework for 
     collaboration between the United

[[Page 16014]]

     States and Israel in energy research and development 
     activities;
       (14) Israeli scientists and researchers have long been at 
     the forefront of research and development in the field of 
     alternative renewable energy sources;
       (15) many of the top corporations of the world have 
     recognized the technological and scientific expertise 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 
     rechargeable batteries;
       (B) the development of a technique that vastly increases 
     the efficiency of using solar energy 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 combustion engines; and
       (17) cooperation between the United States and Israel in 
     the field of research and development of alternative 
     renewable energy sources would be in the interests of both 
     countries, and both countries stand to gain much from such 
     cooperation.

     SEC. 3. GRANT PROGRAM.

       (a) Authority.--Pursuant to the responsibilities described 
     in section 102(10), (14), and (17) of the Department of 
     Energy Organization Act (42 U.S.C. 7112(10), (14), and (17)) 
     and section 103(9) of the Energy Reorganization Act of 1974 
     (42 U.S.C. 5813(9)), the Secretary, in consultation with the 
     BIRD or BSF, shall 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 containing such information and assurances 
     as the Secretary, in consultation with the BIRD or BSF, may 
     require.
       (2) Selection of eligible entities.--The Secretary, in 
     consultation with the Directors of the BIRD and BSF, may 
     review any application submitted 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 determined by the 
     Secretary, in consultation with the BIRD or BSF.
       (d) Recoupment.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary 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 requirements of this subsection 
     as necessary, depending on--
       (A) the commercial competitiveness of the entity or 
     entities developing or using the product 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) Office of Energy Efficiency and Renewable Energy.--The 
     Secretary shall carry out this section through the existing 
     programs at the Office of Energy Efficiency and Renewable 
     Energy.
       (g) 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 
     section 3(a);
       (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 citizens, appointed by 
     the Secretary of Energy after consultation with appropriate 
     officials in the Israeli Government.
       (2) Deadline for appointments.--The initial appointments 
     under paragraph (1) shall be made not later than 60 days 
     after the date of enactment of this Act.
       (3) Term.--Each member of the Advisory Board shall be 
     appointed for a term of 4 years.
       (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 expenses, including per diem in lieu of 
     subsistence, 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 Chairperson.
       (d) Termination.--Section 14(a)(2)(B) of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     Advisory Board.

     SEC. 5. DEFINITIONS.

       In this Act:
       (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 Israel-United States 
     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 entity'' 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 consultation with the 
     BIRD or BSF, using the criteria established by the Secretary, 
     in consultation 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 energy, improved energy efficiency, or renewable 
     energy sources.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy, acting through the Assistant Secretary of Energy 
     for Energy Efficiency and Renewable Energy.

     SEC. 6. TERMINATION.

       The grant program authorized under section 3 and the 
     Advisory Board shall terminate upon the expiration of the 7-
     year period which begins on the date of the enactment of this 
     Act.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       The Secretary is authorized to expend not more than 
     $20,000,000 to carry out this Act for each of fiscal years 
     2006 through 2012 from funds previously authorized to the 
     Office of Energy Efficiency and Renewable Energy.

     SEC. 8. CONSTITUTIONAL AUTHORITY.

       The Constitutional authority on which this Act rests is the 
     power of Congress to regulate commerce with foreign nations 
     as enumerated in Article I, Section 8 of the United States 
     Constitution.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona (Mr. Shadegg) and the gentleman from New York (Mr. Engel) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Arizona.

                              {time}  1330


                             General Leave

  Mr. SHADEGG. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material on the 
bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. SHADEGG. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 2730, the United 
States-Israel

[[Page 16015]]

Energy Cooperation Act and urge my colleagues to support its passage. 
The U.S.-Israel Energy Cooperation Act will help curb America's 
reliance on foreign oil and increase our use of new energy 
technologies.
  As the gentleman knows, the price of gasoline has risen to well above 
$3 a gallon across America. Indeed, it is drastically affecting the 
pocketbooks of all Americans and all American businesses. It affects 
every aspect of our economy; and, indeed, the rising cost of energy 
threatens the American economy. That is at least one of the reasons why 
the United States and Israel need to work together in partnership to 
look for ways that we can reduce our reliance on foreign sources of 
energy and particularly on foreign oil.
  This bill utilizes the critical and close relationship between the 
United States and Israel on a common area of interest, that is, energy 
and energy independence by creating a vehicle for innovation and 
security.
  Mr. Speaker, every American is aware that the United States is too 
dependent on foreign sources of energy. Every American should realize 
the danger this creates for us as a Nation. The United States 
Government predicts that by 2025 America will import almost 68 percent 
of its oil; and, increasingly, this oil comes from dangerous parts of 
the world. It comes from unstable areas, including the increasingly 
unstable Middle East.
  Global fuel and consumption, however, is projected to increase by 100 
to 150 percent over the next 20 years, driven largely by the rapidly 
growing Chinese and Indian economies; and this growth and this increase 
in demand will force prices even higher.
  If the United States is to protect itself from the economic and the 
political threats created by this excessive dependence, we must reduce 
our reliance on foreign energy sources and on foreign oil as quickly 
and as efficiently as possible.
  But there is a common interest between the United States and Israel 
in this work. Israel, too, is too dependent on foreign sources of 
energy; and this legislation takes care of that issue. It allows the 
United States Department of Energy to invest up to $20 million annually 
in joint energy projects between American and Israeli businesses, 
scientists and academics. Eligible products include research, 
development and commercialization of alternative energy sources, 
improved energy efficiency and renewable energy sources.
  It is important, Mr. Speaker, to understand that legislation is not a 
handout, unlike other similar programs. Every single recipient of funds 
under this legislation is required, by the terms of the legislation, to 
pay back the American taxpayers in proportion to the Federal 
Government's share of the overall investment in the project. What that 
means is that if a successful project is developed as a result of these 
funds and if an energy source is found, according to rules provided by 
the Secretary of Energy, the Treasury of the United States will be 
repaid in proportion to the Federal Government's investment in the 
research involved or in the project which created this new energy.
  H.R. 2730 has wide bipartisan support, including more than 100 
Members of this House. It passed the Energy and Commerce Committee 
unanimously. I believe it is a critically important piece of 
legislation, and that that view is shared not only by those of us in 
this Congress but also by the people of Israel.
  Not long ago, Mr. Speaker, the Prime Minister, Ehud Olmert, addressed 
a joint session of the United States Congress here in this Chamber. In 
his speech to the United States Congress just a few weeks ago, he 
expressed his support for this legislation, stating that ``through the 
United States-Israel Energy Cooperation Act, in collaboration with our 
U.S. counterparts, Israel will increase its efforts to find advanced 
scientific and technological solutions designed to develop new energy 
sources and encourage conservation.''
  I would suggest it is not common for the Prime Minister of another 
nation to call on the United States to join them in the passage of a 
specific piece of legislation which will benefit both nations.
  The United States and Israel are both at the cutting edge of research 
in energy technologies, but we must do more to end our dependence on 
foreign energy, and we have every reason to cooperate. For example, in 
my own State of Arizona, an Israeli scientist is working with an 
Arizona company on a demonstration project involving a very fast-
growing algae which can be used to power a biomass energy plan.
  By passing this legislation, the United States and Israel are 
fostering a partnership dedicated to scientific breakthroughs and 
improvements in energy innovation. This modest investment in scientific 
research will help both the United States and Israel in our efforts to 
develop new energy technologies, and it will help both of our countries 
reduce our reliance on foreign sources of energy.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ENGEL. Mr. Speaker, I yield myself as much time as I may consume.
  I want to commend my friend from Arizona for his remarks. I certainly 
concur with everything he said.
  Mr. Speaker, I rise today in strong support of the United States-
Israel Energy Cooperation Act. As an original cosponsor of this 
legislation, I am pleased that Congress is moving it forward today. I 
would like to thank the gentleman from Arizona (Mr. Shadegg) and the 
gentleman from California (Mr. Sherman) for their great leadership in 
introducing this bill, as well as Chairman Barton and Ranking Member 
Dingell for supporting it in our committee.
  As the gentleman from Arizona pointed out, the bill did pass the 
Energy and Commerce Committee unanimously, which shows the strong 
bipartisan support that it has. We will all benefit from our mutual 
commitment to this legislation; and, more importantly, our country will 
benefit.
  Today, the United States consumes nearly 21 million barrels of oil 
per day, demands 25 percent of global oil production and holds only 3 
percent of the global oil supply. This has made our Nation dangerously 
dependent on unstable and hostile nations for fuel and illustrates just 
how important it is for the United States to continue to build upon 
partnerships with other nations for developing alternative energy 
sources. Simply put, initiatives like this will help strengthen United 
States national security.
  Israel has always been a close friend and ally of the United States, 
and this legislation simply builds upon both nations' history of 
innovation and cooperation on scientific research. We have already 
worked together on the United States-Israel Binational Science 
Foundation and the United States-Israel Binational Industrial Research 
and Development Foundation.
  As some of you may remember, during consideration of the Energy 
Policy Act of 2005, I had a provision successfully adopted into the 
law, section 986, which requires the Secretary of Energy to report 
regularly on energy collaboration between the United States and Israel. 
We received the first report in November of 2005, and today's 
legislation will certainly expand opportunities for us to work together 
on achieving energy independence through the development and deployment 
of environmentally friendly energy technologies.
  As a result of H.R. 2730, the Secretary of Energy will establish a 
grant program for joint ventures composed of Israeli and U.S. 
businesses and academics devoted to improving and expanding research on 
alternative energy, improved the energy efficiency, or renewable energy 
sources.
  Our Nation is long overdue for a national energy policy that provides 
reliable, secure, affordable and environmentally responsible supplies 
of energy for our growing economy. While the small grants authorized in 
this program certainly cannot alone wean us off our addiction on oil in 
the short term, working with the highly advanced scientific sector in 
Israel, we

[[Page 16016]]

can move in the right direction and affirm our hopes for what can be 
discovered and created through the mutual cooperation of our two great 
nations.
  Again, I want to say that it is imperative that the United States 
take steps to wean itself off of its dependence on oil, and Middle 
Eastern oil in particular. Our national security and our energy needs 
are intertwined, and this bill will go a great step in moving in that 
direction.
  So, Mr. Speaker, I strongly support the U.S.-Israel Energy 
Cooperation Act and urge its adoption today.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHADEGG. Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman 
from Florida (Ms. Ros-Lehtinen).
  Ms. ROS-LEHTINEN. Mr. Speaker, I thank the gentleman for yielding me 
time.
  I rise today in strong support of this bill introduced by my 
distinguished colleague and friend, Mr. Shadegg of Arizona.
  This measure establishes a grant program to fund joint ventures 
between American and Israeli businesses and scholars and calls for the 
creation of an International Energy Advisory Board comprised of U.S. 
and Israeli representatives working in tandem toward the 
diversification of our sources of energy.
  Today, due to our reliance on the foreign supply of oil, the United 
States is in a troubling position that is quickly escalating. As 
reported by the Department of Energy, U.S. dependence on foreign oil 
will increase by 33 percent in the next 20 years.
  What makes the situation even worse is that frequently the money 
invested in foreign oil to meet our energy needs is then manipulated to 
fund terrorists who aim to attack us and our closest allies.
  Part of the solution to this problem is simple: eliminating our 
dependency on Middle Eastern sources of energy and developing 
alternative energy sources to meet our needs.
  Although developing alternative energy sources, that is, forms of 
energy, is far from easy, it is necessary for our continued security. 
Working together with Israel on developing such alternatives and on 
improving energy efficiency makes perfect sense.
  Israel is a close and much valued friend of the United States, one 
with whom we share a deep bond based on mutual values of freedom, 
justice and democracy and one with whom we stand side by side in our 
struggle against terror.
  Israeli scientists have developed some of the world's most advanced 
technology, contributing greatly to breakthroughs in vital fields. One 
of Israel's many technological breakthroughs in the field of renewable 
energy sources includes a technique that significantly increases the 
efficiency of using solar energy to generate hydrogen for use in energy 
cells.
  Mutual collaboration would yield great benefits for both the United 
States and Israel in an effort to develop technological solutions to 
our energy dependency problem.
  Mr. Speaker, by supporting this bill, the United States Congress will 
enhance the cooperation between our two countries and will jump-start 
the creative process for the development of innovative approaches to a 
critical issue with domestic and national security implications.
  And I thank the gentleman, the sponsor, for his time.
  Mr. ENGEL. Mr. Speaker, I yield 6 minutes to the gentleman from 
California (Mr. Sherman), my friend who worked hard on this 
legislation.
  Mr. SHERMAN. Mr. Speaker, there is no greater problem in this world 
than our dependence on petroleum. There is no greater problem for our 
Nation.
  There is no greater problem for our economy than the fact that we 
have to import so much oil, sending billions of dollars every year to 
other countries, thereby impacting our balance of payments.
  There is no greater problem for families than paying for gasoline and 
paying to cool or heat their homes.
  There is no greater problem for the environment than the pollution 
caused when we burn petroleum, and there is no greater problem for the 
environment than global warming and the production of carbon dioxide 
and other greenhouse gases.
  There is no greater problem for our national security than our 
reliance on foreign petroleum, first, the physical security of that 
petroleum and, second, the fact that the rest of the world, if not the 
United States, finds it necessary in order to acquire petroleum to give 
money to such countries as Iran and others who use that money for 
nefarious purposes.
  Therefore, there is nothing that we can do that is more important 
than weaning the United States and the world off its dependence of 
petroleum. And the first step is research, and an important part of 
that research is cooperative research with other countries similarly 
dedicated to finding alternative energy.

                              {time}  1345

  There is perhaps no better partner than Israel. For the prime 
minister of Israel just a couple months ago, as the gentleman from 
Arizona pointed out, stood in this hall and said, ``Both Israel and the 
United States share a desire for energy security and prevention of 
global warming. Therefore, through the United States-Israel Energy 
Cooperation Act, in collaboration with our U.S. counterparts, Israel 
will increase its efforts to find advanced scientific and technological 
solutions designed to develop new energy sources and encourage 
conservation.''
  As the prime minister pointed out, Israel and the United States have 
a strong mutual interest in advanced alternative energy research. Both 
countries are on the cutting edge of this scientific research. With 
modest investment, we can help stimulate joint efforts between American 
and Israeli private sector institutions and academic institutions to 
work toward the development of technology that reduces the world's 
dependence on petroleum.
  In the 108th Congress, I introduced a very similar bill to the one 
that is before us today. It has been a pleasure to work with the 
gentleman from Arizona in introducing this bill last year, an improved 
version of the bill, and to work with so many, including the gentleman 
from New York, to see that that bill would reach this floor.
  H.R. 2730 would allow the Department of Energy to invest up to $20 
million annually to provide joint ventures between the U.S. and Israeli 
business and academic researchers both for alternative energy sources 
and for energy conservation. The Federal Government could recoup some 
or all of the monies so appropriated since, as the gentleman from 
Arizona pointed out, under each grant is an obligation for the grantee 
to pay the money back if the investment is successful and revenues are 
obtained.
  Now, this legislation builds on existing cooperative efforts, 
including the United States-Israel Binational Science Foundation and 
the United States-Israel Binational Research and Development 
Foundation. These two entities have already made scientific 
breakthroughs in a variety of fields, including the life sciences, 
medicine, bioengineering, agriculture, and communications. Now it is 
time to redouble these efforts and to focus on energy. As the gentleman 
from New York pointed out, we have already had cooperative efforts with 
Israel on energy and he had added language in a bill passed last year 
to redouble those efforts. It is now time to pass the U.S.-Israel 
Energy Cooperation Act so that we would have a vehicle to move forward 
and work with Israel to use its cutting-edge scientific knowledge, and 
ours, to wean the world one step at a time off the need for consumption 
of petroleum.
  Mr. SHADEGG. Mr. Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Conaway).
  Mr. CONAWAY. Mr. Speaker, I thank the chairman for yielding.
  I want to support this bill, H.R. 2730, for four reasons. One, it 
strengthens our ties between our Nation and Israel. These are mutually 
beneficial ties, and it is important that we continue to strengthen 
those ties on every level.
  I will also support this legislation because it promotes research 
across three very broad areas: One, alternative

[[Page 16017]]

sources of energy, increases or improvements to energy efficiency, and 
then renewable sources of energy. Breakthroughs in any of these three 
can have a dramatic impact on the way we use fuel.
  The third reason I am going to support this is that while it does 
authorize $20 million a year over a 7-year period, there are payback or 
buyback provisions in the bill that allow for companies who benefit 
from seed money if they develop commercial applications of this 
research, they will pay this money back.
  And the fourth reason is that the authors have included a sunset 
provision in the bill that after 7 years it goes away.
  So for these important reasons, I am going to support this bill and 
encourage my colleagues to support it as well.
  Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Nevada (Ms. Berkley).
  Ms. BERKLEY. Mr. Speaker, I would like to thank the gentleman from 
New York, Mr. Eliot Engel, not only for yielding but for being a leader 
on this issue and so many others.
  Mr. Speaker, I rise in strong support of H.R. 2730, the United 
States-Israel Energy Cooperation Act. We need only glance at today's 
headlines about conflict in the Middle East and soaring oil prices to 
know why this legislation is so important to the future of the United 
States and Israel, so important to the future of the entire world.
  This bill will provide the resources to enable top scientists, 
academic institutions, and entrepreneurs in the field of renewable 
energy to develop breakthrough technologies both in the United States 
and in Israel. These two allies, through this legislation, are making a 
major commitment to break our addiction to oil through the development 
of abundant, secure, clean, and renewable sources of energy. I believe 
the United States-Israel Energy Cooperation Act will be recognized in 
the coming years as a major step towards energy independence and it 
will serve as a model for international cooperation we so desperately 
need if the world is to move beyond our dangerous dependence on oil.
  Mr. SHADEGG. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan, my colleague from the Commerce Committee, the chairman of the 
Subcommittee on Telecommunications and the Internet (Mr. Upton).
  Mr. UPTON. Mr. Speaker, I thank the gentleman from Arizona for 
yielding.
  I rise in strong support of this legislation. I would note that it 
passed without dissent in the Energy and Commerce Committee some time 
ago. But I also refer back to the Energy Policy Act of 2005, section 
986, the one we remember so well. It did call for a report to Congress 
on U.S.-Israel cooperative energy research and projects, and this bill 
takes that one step further, and it funds cooperative joint ventures to 
promote energy efficiency, renewable energy, and alternative energy 
sources.

  We have an energy crunch, a crisis. We should be working together. 
That is what this bill does. It expands the opportunities for companies 
and universities and different bodies in both countries to work 
together to develop new technologies, whether it be solar or other 
different projects, where consumers, citizens from both countries, will 
benefit. It is good bipartisan legislation. I would like to think that 
we can pass it without dissent this afternoon, move it to the Senate.
  And, again, it was part of the energy bill that the President signed 
last year. This is a step in the right direction. It is good policy. 
That is why the Energy and Commerce Committee passed it out on such a 
strong bipartisan vote, and I would like to think that we will pass it 
without further ado this afternoon.
  Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to again commend the gentleman from Arizona (Mr. 
Shadegg) for his leadership on this bill.
  I think that all the points that have been made on both sides of the 
aisle have been very important and very relevant, and that is why this 
bill is really a no-brainer. It is good for the United States, first 
and foremost. It is good for our relationship with the beleaguered 
State of Israel. And we know that to move forward, we need to find 
alternatives to oil, and this bill goes a long, long way. I am 
convinced that the technology is out there.
  I am convinced that we can be free of our addiction to oil, that we 
can take care of our energy needs without oil. I am doing other 
legislation with the gentleman from Georgia (Mr. Kingston) in that 
regard. And I believe that in the next decade, our attention is really 
going to have to be focused on finding alternative ways of energy for 
this country.
  This bill is an absolute win for everybody, and I urge my colleagues 
to support it.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. SHADEGG. Mr. Speaker, I yield myself such time as I may consume.
  At this point, I will insert in the Record an exchange of letters 
between the chairman of the Commerce and Energy Committee and the 
chairman of the Science Committee on the issue of jurisdiction over 
this legislation.

                                         House of Representatives,


                                         Committee on Science,

                                    Washington, DC, June 29, 2006.
     Hon. Joe Barton,
     Chairman, Committee on Energy and Commerce,
     Washington, DC.
       Dear Mr. Chairman: I am writing to you concerning the 
     jurisdictional interest of the Science Committee in H.R. 
     2730, the United States-Israel Energy Cooperation Act. The 
     Science Committee acknowledges the importance of H.R. 2730 
     and the need for the legislation to move expeditiously. 
     Therefore, while we have a valid claim to jurisdiction over 
     the bill, I agree not to request a sequential referral. This, 
     of course, is conditional on our mutual understanding that 
     nothing in this legislation or my decision to forgo a 
     sequential referral waives, reduces or otherwise affects the 
     jurisdiction of the Science Committee, and that a copy of 
     this letter and of your response will be included in the 
     Committee report and in the Congressional Record when the 
     bill is considered on the House Floor.
       The Science Committee also expects that you will support 
     our request to be conferees on any provisions over which we 
     have jurisdiction during any House-Senate conference on this 
     legislation.
       Thank you for your attention to this matter.
           Sincerely,
                                                Sherwood Boehlert,
     Chairman.
                                  ____

                                         House of Representatives,


                             Committee on Energy and Commerce,

                                    Washington, DC, June 29, 2006.
     Hon. Sherwood L. Boehlert,
     Chairman, Committee on Science,
     House of Representatives, Washington, DC.
       Dear Chairman Boehlert: Thank you for your letter in 
     regards to H.R. 2730, The United States-Israel Cooperation 
     Act.
       I acknowledge and appreciate your willingness not to 
     exercise your jurisdiction over the bill. In doing so, I 
     agree that your decision to forgo further action on the bill 
     will not prejudice the Committee on Science with respect to 
     its jurisdictional prerogatives on this legislation or 
     similar legislation. Further, I recognize your right to 
     request conferees on those provisions within the Committee on 
     the Science's jurisdiction should they be the subject of a 
     House-Senate conference on this or similar legislation.
       I will include your letter and this response in the 
     Committee Report and I look forward to working with you as 
     the bill moves to the House Floor.
           Sincerely,
                                                       Joe Barton,
                                                         Chairman.

  Mr. Speaker, I want to begin by thanking my colleagues Mr. Sherman 
and Mr. Engel for their work on this bill. Mr. Sherman was the lead 
cosponsor of the legislation. He has, as he mentioned, worked very hard 
on the issue in a prior Congress. I am pleased to have been able to 
work with him on this legislation in this Congress and now to bring it 
to fruition. I appreciate his comments that he feels the current bill 
is an improved version and, in any event, believe it is a very 
important step forward.
  I also want to thank my colleague from New York for his cooperation 
and his support of this legislation.

[[Page 16018]]

  I believe it is a strong piece of legislation that will help move 
America forward and help move Israel forward. It will enable us to 
partner together and to address a problem which confronts both nations 
in regard to our excessive dependence on foreign sources of energy.
  I think it is also important to note the unique nature of this 
legislation, as has been discussed in the debate here today, and that 
is the payback provision. Lots of times, government funds research, 
that research is phenomenally successful, but the government never sees 
and the taxpayers never see a payback. I am pleased we were able to 
negotiate language which calls for, under this legislation, a payback 
provision so that if any of the work done under the auspices of these 
funding programs produces a financial success, the taxpayers are repaid 
proportionally according to their investment.
  I think it is critically important legislation. I call on my 
colleagues to support its passage
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today to support H.R. 
2730, the United States-Israel Energy Cooperation Act, introduced by my 
colleagues Congressman Sherman and Congressman Shadegg.
  The bill uses two existing cooperative efforts, United States-Israel 
Binational Science Foundation (BSF) and the United States-Israel 
Binational Industrial Research and Development (BIRD) Foundation, to 
establish a $20 million/year grant program administered by the 
Department of Energy. This program is intended to encourage American 
and Israeli businessmen and academics to pursue projects that would 
reduce our dependence on current energy resources and explore ways to 
increase energy efficiency.
  Research by the Energy Information Administration 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. We are familiar 
with our Nation's ``addiction to oil,'' as President Bush phrased it in 
the State of the Union, and the need to wean ourselves off of foreign 
energy dependence and onto more efficient energy resources.
  As we watch the Middle East transform before our eyes once again, we 
must remember that in Israel we not only have a strategic ally. Israel 
is also a leader in technology innovation and research, a resilient and 
strong economic partner, and a nation that shares our interest in the 
development of energy alternatives development. Israel has the highest 
proportion in the world of scientists and engineers within the working 
population, as well as the highest proportion of published scientific 
papers and patents.
  The United States and Israel share an unease about depleting energy 
resources, as well as a concern of the environment, and the importance 
of conservation initiatives. Although our politics and diplomacy are 
clearly actively engaged on a different stage of history in the Middle 
East. We must explore opportunities to increase our energy security, 
and pursue scientific advancements with the American and Israeli 
private and public sectors.
  This venture is in our economic interest and our national security 
interest.
  I urge my colleagues to support this bill.
  Mr. SHADEGG. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Arizona (Mr. Shadegg) that the House suspend the rules 
and pass the bill, H.R. 2730, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``To authorize 
funding for eligible joint ventures between United States and Israeli 
businesses and academic persons, to establish the International Energy 
Advisory Board, and for other purposes.''.
  A motion to reconsider was laid on the table.

                          ____________________