[House Report 106-377]
[From the U.S. Government Publishing Office]



106th Congress                                            Rept. 106-377
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
            GAS HYDRATE RESEARCH AND DEVELOPMENT ACT OF 1999

                                _______
                                

                October 13, 1999.--Ordered to be printed

                                _______
                                

    Mr. Sensenbrenner, from the Committee on Science, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1753]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, to whom was referred the bill 
(H.R. 1753) to promote the research, identification, 
assessment, exploration, and development of methane hydrate 
resources, and for other purposes, having considered the same, 
report favorably thereon with amendments and recommend that the 
bill as amended do pass.

                            C O N T E N T S

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................3
 III. Background and Need for Legislation.............................4
  IV. Summary of Hearings.............................................5
   V. Committee Actions...............................................8
  VI. Summary of Major Provisions of the Bill.........................8
 VII. Section-By-Section Analysis and Committee Views.................8
VIII. Cost Estimate..................................................11
  IX. Congressional Budget Office Cost Estimate......................12
   X. Compliance with Public Law 104-4...............................13
  XI. Committee Oversight Findings and Recommendations...............13
 XII. Oversight Findings and Recommendations by the Committee on 
      Government Reform..............................................14
XIII. Constitutional Authority Statement.............................14
 XIV. Federal Advisory Committee Statement...........................14
  XV. Congressional Accountability Act...............................14
 XVI. Changes in Existing Law Made by the Bill, as Reported..........14
XVII. Committee Recommendations......................................15
XVIII.Proceedings of Subcommittee on Energy and Environment Markup...15

 XIX. Proceedings of Committee on Science Markup.....................26

                              I. Amendment

  The amendments are as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Gas Hydrate Research and Development 
Act of 1999''.

SEC. 2. 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) Institution of higher education.--The term ``institution 
        of higher education'' means an institution of higher education, 
        within the meaning of section 1201(a) of the Higher Education 
        Act of 1965 (20 U.S.C. 1141(a)).
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy, acting through the Assistant Secretary for Fossil 
        Energy.
          (7) Secretary of defense.--The term ``Secretary of Defense'' 
        means the Secretary of Defense, acting through the Secretary of 
        the Navy.
          (8) 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.

SEC. 3. GAS HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

  (a) In General.--
          (1) Commencement of program.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary, in 
        consultation with the Secretary of Defense, the Secretary of 
        the Interior, and the Director, shall commence a program of gas 
        hydrate research and development.
          (2) Designations.--The Secretary, the Secretary of Defense, 
        the Secretary of the Interior, and the Director shall designate 
        individuals to carry out this section.
          (3) Meetings.--The individuals designated under paragraph (2) 
        shall meet not later than 120 days after the date on which all 
        such individuals are designated and not less frequently than 
        every 120 days thereafter to--
                  (A) review the progress of the program under 
                paragraph (1); and
                  (B) make recommendations on future activities to 
                occur subsequent to the meeting.
  (b) Grants, Contracts, Cooperative Agreements, Interagency Funds 
Transfer Agreements, and Field Work Proposals.--
          (1) Assistance and coordination.--The Secretary may award 
        grants or contracts to, or enter into cooperative agreements 
        with, institutions of higher education and industrial 
        enterprises to--
                  (A) conduct basic and applied research to identify, 
                explore, assess, and develop gas hydrate as a source of 
                energy;
                  (B) assist in developing technologies required for 
                efficient and environmentally sound development of gas 
                hydrate resources;
                  (C) undertake research programs to provide safe means 
                of transport and storage of gas produced from gas 
                hydrates;
                  (D) promote education and training in gas hydrate 
                resource research and resource development;
                  (E) conduct basic and applied research to assess and 
                mitigate the environmental impacts of hydrate degassing 
                (including both natural degassing and degassing 
                associated with commercial development); and
                  (F) develop technologies to reduce the risks of 
                drilling through gas hydrates.
          (2) Competitive merit-based review.--Funds made available 
        under paragraph (1) shall be made available based on a 
        competitive merit-based process.
  (c) Consultation.--The Secretary may establish an advisory panel 
consisting of experts from industry, institutions of higher education, 
and Federal agencies to--
          (1) advise the Secretary on potential applications of gas 
        hydrate; and
          (2) assist in developing recommendations and priorities for 
        the gas hydrate research and development program carried out 
        under subsection (a)(1).
  (d) Limitations.--
          (1) Administrative expenses.--Not more than 5 percent of the 
        amount made available to carry out this section for a fiscal 
        year may be used by the Secretary for expenses associated with 
        the administration of the program carried out under subsection 
        (a)(1).
          (2) 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, 
        industry, and institutions of higher education to research, 
        identify, assess, and explore gas hydrate resources;
          (2) undertake programs to develop basic information necessary 
        for promoting long-term interest in gas 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 gas hydrate resource 
        development; and
          (5) report annually to Congress on accomplishments under this 
        section.

SEC. 4. AMENDMENTS TO THE MINING AND MINERALS POLICY ACT OF 1970.

  Section 201 of the Mining and Minerals Policy Act of 1970 (30 U.S.C. 
1901) is amended--
          (1) in paragraph (6)--
                  (A) in subparagraph (F), by striking ``and'' at the 
                end;
                  (B) by redesignating subparagraph (G) as subparagraph 
                (H); and
                  (C) by inserting after subparagraph (F) the 
                following:
                  ``(G) for purposes of this section and sections 202 
                through 205 only, methane hydrate; and'';
          (2) by redesignating paragraph (7) as paragraph (8); and
          (3) by inserting after paragraph (6) the following:
          ``(7) The term `methane hydrate' means a methane clathrate 
        that--
                  ``(A) is in the form of a methane-water ice-like 
                crystalline material; and
                  ``(B) is stable and occurs naturally in deep-ocean 
                and permafrost areas.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Secretary of Energy to 
carry out this Act--
          (1) $5,000,000 for fiscal year 2000;
          (2) $7,500,000 for fiscal year 2001;
          (3) $10,000,000 for fiscal year 2002;
          (4) $10,000,000 for fiscal year 2003; and
          (5) $10,000,000 for fiscal year 2004.
Amounts authorized under this section shall remain available until 
expended.

SEC. 6. SUNSET.

  Section 3 of this Act shall cease to be effective after the end of 
fiscal year 2004.

  Amend the title so as to read:

      A bill to promote the research, identification, 
assessment, exploration, and development of gas hydrate 
resources, and for other purposes.

                        II. Purpose of the Bill

    The purpose of H.R. 1753, as amended, is to direct the 
Secretary of Energy, in consultation with the Secretaries of 
Defense and the Interior, and the Director of the National 
Science Foundation (NSF), to commence a program of gas hydrate 
research and development (R&D).

              III. Background and Need for the Legislation

    Gas hydrates consist of a mixture of gas and water frozen 
into a solid crystalline state. At moderately high pressure and 
low temperature, the gas molecule is trapped inside a cage of 
water molecules and chilled into a solid hydrate, while 
expelling salt.
    The most abundant form of gas hydrates is methane hydrates, 
which are found in many areas throughout the world. The 1995 
``National Assessment of United States Oil and Gas Resources'' 
of the U.S. Geological Survey (USGS) estimated the mean 
(expected value) in-place gas hydrate resource for the entire 
United States to be 320,000 trillion cubic feet of gas--by 
comparison, the U.S. annually consumes about 22 trillion cubic 
feet of methane as natural gas, and the world's currently known 
gas reserves are about 5,000 trillion cubic feet. In addition, 
the occurrence and stability of gas hydrates at oceanic depths 
offers the possibility that excess greenhouse gases, especially 
carbon dioxide, may be disposed in the deep ocean as synthetic 
hydrates.
    There have been several attempts to enact legislation 
authorizing the establishment of a methane hydrates R&D 
program. In the 105th Congress, the Senate passed S. 1418, the 
Methane Hydrate Research and Development Act of 1998, on July 
17, 1998, by Unanimous Consent. In the House, the bill was 
referred to the Committee on Science on July 20, 1998, and in 
addition to the Committee on Resources, for a period to be 
subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the 
jurisdiction of the committee concerned. Within the Science 
Committee, S. 1418 was referred to the Subcommittee on Energy 
and Environment on July 24, 1998, and the Subcommittee held a 
hearing on the measure on September 15, 1998, but took no 
further legislative action.
    On January 28, 1999, Senators Akaka, Lott, Landrieu, Craig, 
and Graham introduced S. 330, the Methane Hydrate Research and 
Development Act of 1999, which is similar to S. 1418. S. 330 
passed the Senate by Unanimous Consent on April 19, 1999. In 
the House, the bill was referred to the Committee on Science on 
April 27, 1999, and in addition to the Committee on Resources, 
for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned. Within the Science 
Committee, S. 330 was referred to the Subcommittee on Energy 
and Environment on April 30, 1999, and within the Committee on 
Resources, the bill was referred to the Subcommittee on Energy 
and Mineral Resources on May 3, 1999.
    On May 11, 1999, Representative Mike Doyle introduced H.R. 
1753, the Methane Hydrate Research and Development Act of 1999, 
a bill to promote the research, identification, assessment, 
exploration, and development of methane hydrate resources, and 
for other purposes. H.R. 1753 is similar to S. 330, except that 
it: (1) requires that any awards of grants or contracts to, or 
any cooperative agreements entered into with, institutions of 
higher education and industrial enterprises be subject to a 
competitive merit-review process; (2) specifies authorization 
levels for the five-year period covering Fiscal year (FY) 2000 
through FY 2004; and (3) sunsets the methane hydrate R&D 
program at the end of FY 2004. Also, on May 11, 1998, H.R. 1753 
wasreferred to the Science Committee, and in addition to the 
Resources Committee, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned. Within the Science 
Committee, the bill was immediately referred to the Subcommittee on 
Energy and Environment, and within the Resources Committee, the bill 
was referred to the Subcommittee on Energy and Mineral Resources on May 
21, 1999.
    On May 12, 1999, the House Science Subcommittee on Energy 
and Environment held a hearing on S. 330 and H.R. 1753, and 
held a markup session immediately following that hearing. The 
Subcommittee favorably reported both bills, with amendments, to 
the Full Science Committee by voice vote. The House Resources 
Subcommittee on Energy and Minerals held a hearing on S. 330 
and H.R. 1753 on May 25, 1999. On June 30, 1999, the Full 
Resources Committee held a markup session on H.R. 1753, and 
ordered the measure reported to the House, as amended, by voice 
vote.
    Given the great potential for energy and scientific 
benefits from gas hydrate R&D, H.R. 1753 authorizes the 
establishment of a gas hydrate R&D program within the 
Department of Energy (DOE), to be carried out in consultation 
with the Departments of Defense and the Interior, and the 
Director of the NSF.

                        IV. Summary of Hearings

    The Science Subcommittee on Energy and Environment held a 
hearing on May 12, 1999, to receive testimony on S. 330 and 
H.R. 1753, the Methane Hydrate Research and Development Act of 
1999, and heard testimony on the bill from three witnesses: (1) 
Mr. Robert S. Kripowicz, DOE's Principal Deputy Assistant 
Secretary for Fossil Energy, (2) Dr. William P. Dillon, 
Research Geologist, Geologic Division, U.S. Department of 
Interior, USGS, Woods Hole, MA, and (3) Dr. Gerald D. Holder, 
USX Dean of Engineering, University of Pittsburgh, Pittsburgh, 
PA.
    Mr. Kripowicz presented DOE's views on the potential for 
methane hydrates as a future source of natural gas, to review 
the progress the Department is making in preparing a multi-
agency coordinated research plan for this potentially vast 
energy resource, and DOE's position on S. 330, the Methane 
Hydrate Research and Development Act, as follows:
     Worldwide, estimates of the natural gas potential 
of methane hydrates approach 400 million trillion cubic feet--a 
staggering figure compared to the 5,000 trillion cubic feet 
that make up the world's currently known gas reserves.
     From 1982-1992, DOE's methane hydrate program 
spent $8 million in developing a foundation of basic knowledge 
about the location and thermodynamic properties of gas 
hydrates.
     In FY 1997 and FY 1998, DOE provided a small 
amount of funding from its Natural Gas Supply Program to 
support activities in preparation for a more definitive program 
proposed for FY 1999.
     In its 1997 report, the Energy Research and 
Development Panel of the President's Committee of Advisors on 
Science and Technology (PCAST) recommended ``a major initiative 
for DOE to work with USGS, the Naval Research Lab, Mineral 
Management Service, and the industry to evaluate the production 
potential of methane hydrates in U.S. coastal waters and world 
wide.'' PCAST also called attention to the possibility 
thatstudies of methane hydrates could lead to possible sequestering of 
carbon dioxide (CO2) in CO2 hydrates.
     On January 21-22, 1998, DOE hosted a workshop in 
Denver on the ``Future of Methane Hydrate Research and Resource 
Development,'' and held a second workshop in Washington, DC, on 
May 12, 1998, to review a ``strawman'' Methane Hydrates Program 
Plan. From these workshops and other planning activities 
carried out cooperatively with the USGS, the Naval Research 
Laboratory, the NSF, the Minerals Management Service and 
industrial and academic experts, DOE published a ``Strategy for 
Methane Hydrates Research & Development'' in August 1998, which 
outlines a multidisciplinary 10-year national program that will 
begin in FY 2000 with the aim of producing the knowledge and 
products necessary for the private sector to begin 
commercially-viable production of methane from hydrates by 
2015.
     Because future program activities were still in 
the formative stage, DOE requested only a minimal level of R&D 
funding ($500,000) in its FY 1999 budget submission to 
Congress. In FY 2000, the Department has requested an increase 
in funding to $2.0 million to initiate the multidisciplinary 
program strategy.
     S. 330 would promote the research, identification, 
assessment, exploration, and development of methane hydrate 
resources. The legislation is consistent with the goals DOE has 
established for the Federal hydrates R&D program; therefore, 
the Department can support this measure.
    Dr. Dillon discussed the USGS assessment of natural gas 
hydrate resources and examined the technology that would be 
necessary to safely and economically produce gas hydrates, as 
follows:
     The primary objectives of USGS gas hydrate 
research are to: (1) document the geologic parameters that 
control the occurrence and stability of gas hydrates; (2) 
assess the volume of natural gas stored within gas hydrate 
accumulations; (3) identify and predict natural sediment 
destabilization caused by gas hydrate; and (4) analyze the 
effects of gas hydrate on drilling safety. The USGS in 1995 
made the first systematic assessment of the in-place natural 
gas hydrate resources of the United States, which showed that 
the amount of gas in the hydrate accumulations of the United 
States greatly exceeds the volume of known conventional 
domestic gas resources. However, gas hydrates represent both a 
scientific and technologic frontier, and much remains to be 
learned about their characteristics and possible economic 
recovery.
     The amount of methane contained in the world's gas 
hydrate accumulations is enormous, but estimates of the amount 
are speculative and range over three orders-of-magnitude from 
about 100,000 to 270,000,000 trillion cubic feet of gas. 
Despite the enormous range of these estimates, gas hydrates 
seem to be a much greater resource of natural gas than 
conventional accumulations.
     Even though gas hydrates are known to occur in 
numerous marine and Arctic settings, little is known about the 
geologic controls on their distribution. Gas hydrates have been 
recovered by scientific drilling along the Atlantic, Gulf of 
Mexico, and Pacific coasts of the United States, as well as at 
many international locations.
     To date, onshore gas hydrates have been found in 
Arctic regions of permafrost and in deep lakes such as Lake 
Baikal in Russia. Gas hydrates associated with permafrost have 
been documented on the North Slope of Alaska and Canada and in 
northern Russia. Combinedinformation from Arctic gas-hydrate 
studies shows that, in permafrost regions, gas hydrates may exist at 
subsurface depths ranging from about 130 to 2,000 meters.
     The USGS 1995 ``National Assessment of United 
States Oil and Gas Resources'' focused on assessing the 
undiscovered conventional and unconventional resources of crude 
oil and natural gas in the United States, and included for the 
first time a systematic appraisal of the in-place natural gas 
hydrate resources of the United States, both onshore and 
offshore. The mean (expected value) in-place gas hydrate 
resource for the entire United States is estimated to be 
320,000 trillion cubic feet of gas. However, this assessment 
does not address the problem of gas hydrate recoverability.
     Gas recovery from hydrates is hindered because the 
gas is in a solid form and because hydrates are usually widely 
dispersed in hostile Arctic and deep marine environments.
     Seafloor stability and safety are two important 
issues related to gas hydrates. Seafloor stability refers to 
the susceptibility of the seafloor to collapse and slide as the 
result of gas hydrate disassociation. The safety issue refers 
to petroleum drilling and production hazards that may occur in 
association with gas hydrates in both offshore and onshore 
environments.
    Dr. Holder testified in support of the legislation, and 
made the following observations:
     S. 330 will not only provide an opportunity for 
outstanding scientific inquiry into the very frontiers of 
geophysics, oceanography and chemical engineering, but will 
also have important consequences for the future of the world's 
energy supply and for the potential impact of fossil fuels on 
global climate change.
     The amount of gas in gas hydrate form is 
sufficient to replace all other forms of fossil fuel. The USGS 
estimates that hydrates contain 320,000 trillion cubic feet of 
gas, which currently sells for about $2.30 per 1000 cubic feet, 
wholesale, so that the market value of this gas is about $700 
trillion dollars. From another point of view, the amount of 
energy in hydrate gas is more than twice that in all other 
forms of fossil fuel combined.
     Methane from hydrates (or other sources) produces 
much less carbon dioxide per unit energy than other forms of 
fossil fuel. Wide production of methane from hydrates could 
reduce carbon dioxide emissions by as much as 20% on a global 
basis without any reduction in energy consumption. No other 
technology can compete with methane hydrate fuel in its 
potential short-term impact on carbon dioxide emissions.
     S. 330 will allow two important areas to be 
addressed: (1) developing maps of the locations and nature of 
the hydrate resource; and (2) technology for gas recovery. In 
addition to these important developments, S. 330 will make 
important contributions to our scientific knowledge of gas 
hydrates, their physical properties, and the molecular 
mechanisms by which hydrates grow and decompose.

                          V. Committee Actions

    On May 11, 1999, Representative Mike Doyle introduced H.R. 
1753, the Methane Hydrate Research and Development Act of 1999, 
a bill to promote the research, identification, assessment, 
exploration, and development of methane hydrate resources, and 
for other purposes. Also, on May 11, the bill was referred to 
the Committee on Science, and in addition to the Committee on 
Resources, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as 
fall within the jurisdiction of the committee concerned. 
Withinthe Science Committee, the bill was immediately referred to the 
Subcommittee on Energy and Environment.

Subcommittee actions

    As summarized above, the Subcommittee on Energy and 
Environment of the Committee on Science heard testimony on H.R. 
1753 on May 12, 1999.
    The Subcommittee on Energy and Environment also convened on 
May 12,1999, to markup H.R. 1753, and favorably considered two 
amendments.
    Amendment 1.--Mr. Calvert, Chairman of the Science 
Committee's Subcommittee on Energy and Environment, asked and 
received unanimous consent to offer a manager's amendment on 
behalf of himself, Mr. Costello, Ranking Minority Member of the 
Subcommittee on Energy and Environment, and Mr. Doyle, a 
Subcommittee Member and the lead sponsor of the measure. The 
manager's amendment substituted the word ``gas'' for the word 
``methane'' everywhere it appeared in the bill, and also struck 
subsection 2(6), which defined the term ``methane hydrates.'' 
The amendment was adopted by voice vote.
    Amendment 2.--Mr. Calvert, Chairman of the Science 
Committee's Subcommittee on Energy and Environment, offered a 
title amendment on behalf of himself, Mr. Costello, and Mr. 
Doyle, which amended the bill's title by striking the word 
``methane'' and inserting the word ``gas''. The amendment as 
adopted by the voice vote.
    With a quorum present, Mr. Costello moved that the 
Subcommittee favorably report H.R. 1753, as amended, to the 
full Committee and that the Chairman take all necessary steps 
to bring the bill before the full Committee for consideration. 
Further, Mr. Costello asked and received unanimous consent that 
the staff be instructed to make all necessary and conforming 
changes to the bill. The motion was also approved by voice 
vote.

Committee actions

    The Full Science Committee met on September 9, 1999, to 
consider H.R. 1753. Chairman Sensenbrenner asked and received 
unanimous consent that the amendment in the nature of a 
substitute adopted by the Subcommittee on Energy and 
Environment on May 12, 1999, be considered for adoption, and 
the bill, as amended, was adopted by voice vote.
    With a quorum present, Mr. Costello moved that the 
Committee favorably report H.R. 1753, as amended, to the House 
with the recommendation that the bill, as amended, do pass. 
Furthermore, Mr. Costello asked and received unanimous Consent 
that the staff be instructed to prepare the legislative report 
and that the Chairman take all necessary steps to bring the 
bill before the House for consideration. The motion was 
approved by voice vote.

              VI. Summary of Major Provisions of the Bill

    H.R. 1753, as amended, Directs the Secretary of Energy, in 
consultation with the Secretaries of Defense and the Interior, 
and the Director of the NSF, to commence a program of gas 
hydrate R&D. It authorizes the Secretary of Energy $5.0 million 
for FY 2000, $7.5 million for FY 2001, and $10.0 million for 
each of FY 2002-FY 2004 to carry out the Program. The bill 
also:
     Authorizes the Secretary of Energy to award grants 
or contracts to, or enter into cooperative agreements with, 
institutions of higher education and industrial enterprises to 
conduct gas hydrate R&D
     Requires that all such awards shall be made 
available based on a competitive merit-review process;
     Allows the Secretary of Energy to establish an 
advisory panel consisting of experts from industry, 
institutions of higher education, and Federal agencies;
     Limits administrative expenses to not more than 5 
percent and prohibits any funds from being used for either the 
construction of a new building or alteration of an existing 
building (including site grading and improvement and architect 
fees);
     Allows the Secretary of the Interior to award gas 
hydrate R&D contracts and grants to, and to enter into 
cooperative agreements with, qualified entities under the 
Marine Mineral Resources Research Act of 1996; and
     Sunsets the gas hydrate R&D program after the end 
of FY 2004.

          VII. Section-by-Section Analysis and Committee Views


Section 1. Short title

    Section 1 cites the Act as the ``Gas Hydrate Research and 
Development Act of 1999.''

Section 2. Definitions

    Section 2 defines: (1) the term ``contract'' to mean a 
procurement contract within the meaning of section 6303 of 
title 31, United States Code (USC); (2) the term ``cooperative 
agreement'' to mean a cooperative agreement within the meaning 
of section 6305 of title 31, USC; (3) the term ``Director'' to 
mean the Director of the NSF; (4) the term ``grant'' to mean a 
grant awarded under a grant agreement, within the meaning of 
section 6304 of title 31, USC; (5) the term ``institution of 
higher education'' to mean an institution of higher education, 
within the meaning of section 102(a)(1) of the Higher Education 
Act of 1965; (6) the term ``Secretary'' to mean the Secretary 
of Energy; acting through the Assistant Secretary for Fossil 
Energy; (7) the term ``Secretary of Defense'' to mean the 
Secretary of Defense, acting through the Secretary of the Navy; 
and (8) the term ``Secretary of the Interior'' to mean the 
Secretary of the Interior, acting through the Director of the 
USGS.

Section 3. Gas hydrate research and development program

    Subsection 3(a) directs the Secretary of Energy to commence 
a gas hydrate R&D program not later than 180 days after the 
date of enactment of this Act, in consultation with the 
Secretaries of Defense and the Interior, and the Director of 
the NSF. These individuals, or their designees, are to meet not 
later than 120 days after the date on which all such 
individuals are designated and not less frequently than every 
120 days to review the progress of the program and to make 
recommendations on future activities.
    Subsection 3(b)(1) permits the Secretary to award grants or 
contracts to, or enter into cooperative agreements with, 
institutions of higher education and industrial enterprises 
to--(A)conduct basic and applied research to identify, explore, 
assess, and develop gas hydrate as a source of energy; (B) assist in 
developing technologies required for efficient and environmentally 
sound development of gas hydrate resources; (C) undertake research 
programs to provide safe means of transport and storage of gas produced 
from gas hydrates; (D) promote education and training in gas hydrate 
resource research and resource development; (E) conduct basic and 
applied research to assess and mitigate the environmental impacts of 
hydrate degassing (including both natural degassing and degassing 
associated with commercial development); and (F) develop technologies 
to reduce the risks of drilling through gas hydrates.
    Subsection 3(b)(2) requires that all funds under subsection 
3(b)(1) shall be made available based on a competitive merit-
review process.
    Subsection 3(c) allows the Secretary to establish an 
advisory panel consisting of experts from industry, 
institutions of higher education, and Federal agencies to--(A) 
advise the Secretary on potential applications of gas hydrate; 
and (B) assist in developing recommendations and priorities for 
the gas hydrate R&D program carried out under subsection 
3(a)(1).
    Subsection 3(d) provides limitations on the use of funds 
made available to carry out the gas hydrate R&D program, 
including: (1) an administrative expense limit of not more than 
5 percent; and (2) a prohibition against any funding being used 
for either the construction of a new building or alteration of 
an existing building (including site grading and improvement 
and architect fees).
    Subsection 3(e) lists the responsibilities of the Secretary 
of Energy in implementing the gas hydrate R&D program, which 
shall include--(1) facilitating and developing partnerships 
among government, industry, and institutions of higher 
education to research, identify, assess, and explore gas 
hydrate resources; (2) undertaking programs to develop basic 
information necessary for promoting long-term interest in gas 
hydrate resources as an energy source; (3) ensuring that the 
data and information developed through the program are 
accessible and widely disseminated as needed and appropriate; 
(4) promoting cooperation among agencies that are developing 
technologies that may hold promise for gas hydrate resource 
development; and (5) reporting annually to Congress on 
accomplishments under this section.

Section 4. Amendment to the Mining and Minerals Policy Act of 1970

    Section 4 amends the definition of ``marine mineral 
resource'' in the Mining and Minerals Policy Act of 1970 (P.L. 
91-621), as added by the Marine Mineral Resources Research Act 
of 1996 (P.L. 104-325), to include gas hydrates. It also limits 
the definition of gas hydrates as a ``marine mineral resource`` 
to only that Act. This provision allows the Secretary of the 
Interior to award gas hydrate R&D contracts and grants to, and 
to enter into cooperative agreements with, qualified entities 
under the Marine Mineral Resources Research Act of 1996.

Section 5. Authorization of appropriations

    Section 5 authorizes to be appropriated to the Secretary of 
Energy to carry out this Act--(1) $5,000,000 for fiscal year 
(FY) 2000; (2) $7,500,000 for FY 2001; (3) $10,000,000 for FY 
2002; (4) $10,000,000 for FY 2003; and (5) $10,000,000 for FY 
2004.

Section 6. Sunset

    Section 6 provides that Section 3 of this Act shall cease 
to be effective after the end of FY 2004.

                          VIII. Cost Estimate

    Rule XIII, clause 3(d)(2) of Rules of the House of 
Representatives requires that each report of a committee on a 
public bill or public joint resolution contain: (A) an estimate 
by the committee of the costs that would be incurred in 
carrying out the bill or joint resolution in the fiscal year in 
which it is reported, and in each of the five fiscal years 
following that fiscal year (or for the authorized duration of 
any program authorized by such bill or joint resolution if less 
than five years); (B) a comparison of the estimate of costs 
described in subdivision (A) made by the committee with any 
estimate of such costs made by a Government agency and 
submitted to such committee; and (C) when practicable, a 
comparison of the total estimated funding level for the 
relevant programs with the appropriate levels under current 
law. However, House rule XIII, clause 3(d)(3)(B) provides that 
this requirement does not apply when a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been included in the report pursuant to House rule 
XIII, clause 3(c)(3). A cost estimate and comparison prepared 
by the Director of the Congressional Budget Office under 
section 402 of the Congressional Budget Act of 1974 has been 
timely submitted to the Committee on Science prior to the 
filing of this report and is included in Section IX of this 
report pursuant to House rule XIII, clause 3(c)(3).
    Rule XIII, clause 3(c)(2) of the Rules of the House of 
Representatives requires that the report of a committee on a 
measure that has been approved by the committee providing new 
budget authority (other than continuing appropriations), new 
spending authority, or new credit authority, or changes in 
revenues or tax expenditures include the statement required by 
section 308(a) of the Congressional Budget Act of 1974, except 
that an estimate of new budget authority shall include, when 
practicable, a comparison of the total estimated funding level 
for the relevant programs to the appropriate levels under 
current law. H.R. 1753 does not contain any new budget 
authority, new spending authority, or new credit authority, or 
changes in revenues or tax expenditures. Assuming that the sums 
authorized under the bill are appropriated, H.R. 1753 does 
authorize additional discretionary spending, as described in 
the Congressional Budget Office report on the bill, which is 
contained in Section IX of this report.

             IX. Congressional Budget Office Cost Estimate

    Rule XIII, clause 3(c)(3) of the Rules of the House of 
Representatives requires that the report of a committee on a 
measure that has been approved by the committee include an 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 if timely submitted to the 
committee before the filing of the report. The Committee on 
Science has received the following cost estimate for H.R. 1753 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 15, 1999.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed revised cost estimate for H.R. 1753, the 
Gas Hydrate Research and Development Act of 1999. The previous 
estimate referred to the bill's original title, which was 
amended by the committee. This estimate reflects the bill's new 
amended title.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kim Cawley.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1753--Gas Hydrate Research and Development Act of 1999

    Summary: H.R. 1753 would authorize appropriations for a new 
research and development program at the Department of Energy 
(DOE) on the use of gas hydrate as a source of energy. DOE 
would administer the program through grants, contracts, and 
cooperative agreements with universities and industrial 
enterprises. Deposits of gas hydrate occur in deep ocean and 
permafrost areas of the world and consist of methane-water ice-
like crystalline material.
    CBO estimates that appropriating the specified amounts 
would increase discretionary spending by $35 million over the 
next five years. H.R. 1753 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UNRA) 
and would not impose costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1753 is shown in the following table. 
For purposes of this estimate, CBO assumes that H.R. 1753 will 
be enacted by or near the beginning of fiscal year 2000, that 
the authorized amounts will be appropriated for each year, and 
that outlays will occur at the rate observed for similar 
existing programs. The costs of this legislation fall within 
budget function 270 (energy).
    Pay-as-you-go considerations: None.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................        5        8       10       10       10
Estimated Outlays..................................................        2        5        8       10       10
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 1753 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not impose any costs on state, local, 
or tribal governments. State universities might benefit from 
research grants, contracts, or cooperative agreements provided 
through this bill.
    Previous CBO estimates: On September 13, 1999, CBO prepared 
a cost estimate for H.R. 1753 that did not reflect the correct 
title for the bill as approved by the House Committee on 
Science. This estimate corrects that error.
    On July 9, 1999, CBO prepared a cost estimate for H.R. 1753 
as ordered reported by the House Committee on Resources on June 
30, 1999. The legislation reported by the Resources Committee 
would authorize the appropriation of $8.5 million more (over 
five years) than the version of the bill reported by the 
Science Committee.
    On March 9, 1999, CBO transmitted a cost estimate for S. 
330, the Methane Hydrate Research and Development Act of 1999, 
as ordered reported by the Senate Committee on Energy and 
Natural Resources on March 4, 1999. Differences in the 
estimates are attributable to differences between the two 
bills. The Senate bill would authorize sums as may be necessary 
for the program, which CBO estimated would total about $45 
million over the next five years. By comparison, H.R. 1753 
would authorize $43 million for these activities over the same 
period.
    Estimate prepared by: Kim Cawley.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  X. Compliance with Public Law 104-4

    H.R. 1753 contains no unfunded mandates.

          XI. Committee Oversight Findings and Recommendations

    Rule XIII, clause 3(c)(1) of the Rules of the House of 
Representatives requires that the report of a committee on a 
measure that has been approved by the committee oversight 
findings and recommendations under clause 2(b)(1) of rule X. 
The Committee of Science's oversight findings and 
recommendations are reflected in the body of this report.

    XII. Oversight Findings and Recommendations by the Committee on 
                           Government Reform

    Rule XIII, clause 3(c)(4) of the Rules of House 
Representatives requires that the report of a committee on a 
measure has been approved by the committee include a summary of 
oversight findings and recommendations made by the Committee on 
Government Reform under clause 4(c)(2) of rule X if such 
findings and recommendations have been submitted to the 
reporting committee in time to allow it to consider such 
findings and recommendations during its deliberations on the 
measure. The Committee on Science has received no such findings 
or recommendations from the Committee on Government Reform.

                XIII. Constitutional Authority Statement

    Rule XIII, clause 3(d)(1) of the Rules of the House of 
Representatives requires that each report of a committee on a 
public bill or public joint resolution contain a statement 
citing the specific powers granted to the Congress in the 
Constitution to enact the law proposed by the bill or joint 
resolution. Article I, section 8 of the Constitution of the 
United States grants Congress the authority to enact H.R. 1753.

               XIV. Federal Advisory Committee Statement

    H.R. 1753 authorizes the Secretary of Energy to establish 
an advisory panel consisting of experts from industry, 
institutions of higher education, and Federal agencies to 
advise the Secretary on potential applications of gas hydrate; 
and to assist in developing recommendations and priorities for 
the gas hydrate R&D program. The functions of this advisory 
panel are not currently being performed nor could they be 
performed by one or more agencies or by an advisory committee 
already in existence, or by enlarging the mandate of an 
existing advisory committee.

                  XV. Congressional Accountability Act

    The Committee finds that H.R. 1753 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

       XVI. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as 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):

       SECTION 201 OF THE MINING AND MINERALS POLICY ACT OF 1970


SEC. 201. DEFINITIONS.

  In this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (6) The term ``marine mineral resource'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (F) metal sulfides; [and]
                  (G) for purposes of this section and sections 
                202 through 205 only, methane hydrate; and
                  [(G)] (H) other marine resources that are 
                not--

           *       *       *       *       *       *       *

          (7) The term ``methane hydrate'' means a methane 
        clathrate that--
                  (A) is in the form of a methane-water ice-
                like crystalline material; and
                  (B) is stable and occurs naturally in deep-
                ocean and permafrost areas.
          [(7)] (8) The term ``Secretary'' means the Secretary 
        of the Interior.

                    XVII. Committee Recommendations

    On September 9, 1999, a quorum being present, the Committee 
favorably reported H.R. 1753, the Gas Hydrates Research and 
Development Act of 1999, as amended, by a voice vote, and 
recommended its enactment.

  XVIII. Proceedings of Subcommittee on Energy and Environment Markup




  H.R. 1753, THE METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 1999

                              ----------                              


                        WEDNESDAY, MAY 12, 1999

                  House of Representatives,
            Subcommittee on Energy and Environment,
                                      Committee on Science,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 1:55 p.m., in 
room 2318, Rayburn House Office Building, Hon. Ken Calvert 
(Chairman of the Subcommittee) presiding.
    Chairman Calvert [presiding]. The Subcommittee will come to 
order.
    We convene today to mark up H.R. 1753, the Methane Hydrate 
Research and Development Act of 1999 and S. 330, the Methane 
Hydrate Research and Development Act of 1999. Pursuant to 
notice, the Subcommittee on Energy and Environment is meeting 
today to consider the following measures as I just indicated.
    I would like to ask unanimous consent for the authority to 
recess at any point. Hearing no objections, I would lead by 
example and keep things moving along briskly; therefore, I will 
dispense with my opening remarks and ask unanimous consent that 
the record, at this point, refer to my earlier opening 
statement. Hearing no objection, so ordered.

                   Statement of Chairman Ken Calvert

    Today we will hear testimony on H.R. 1753, the Methane 
Hydrate Research and Development Act of 1999. A similar bill, 
S. 330 passed the Senate by unanimous consent on April 19. 
Immediately following the hearing we will markup H.R. 1753.
    Our distinguished panel today includes Mr. Robert 
Kripowitz, Principal Deputy Assistant Secretary for Fossil 
Energy, at the US Department of Energy (DOE); Dr. William 
Dillon, a geologist with the US Geological Survey (USGS); and 
finally, Dr. Gerald Holder, who is the Dean of the School of 
Engineering at the University of Pittsburgh.
    Methane hydrates are methane-bearing, ice-like substances 
found in undersea sediment and in Arctic permafrost. These 
methane hydrates will provide an abundant supply of natural gas 
if science can discover a practical, environmentally sound way 
to extract them. Unfortunately, as we will hear from our 
witnesses today, this will not be easy.
    The federal government has only sporadically funded 
research into Methane Hydrates over the past couple of decades. 
The DOE closed a 10-year research program in 1992, and has 
maintained a minimally funded program since then, while the 
USGS has continued its program with some success.
    The legislation before us seeks to make funds available to 
continue looking into extracting methane hydrates. It also 
seeks to better coordinate research between the Department of 
Energy, the US Geological Survey and the US Navy.
    I look forward to hearing today's testimony and pursuing 
these subjects in greater detail.

    We are short the needed quorum. However, it is my 
understanding that the minority will not object; thus, we will 
remain silent and let this fall by the wayside, okay.
    I would like to request that members' opening statements be 
limited to 5 minutes. I would also ask unanimous consent that 
all members' comments be included in the record. Without 
objection.
    Are there any members seeking recognition for an opening 
statement? The gentleman from Pennsylvania.
    Mr. Doyle. Thank you and following my Chairman's lead I 
will be very, very brief. I just want to, first of all, thank 
you, Mr. Chairman, and let you know it's been a pleasure to 
work with you and Mr. Costello on this legislation, H.R. 1753. 
I'm pleased to see that this House is going to give--and this 
Committee--is going to give this issue the consideration it 
deserves. I think we've discussed already in some length what 
the bill does, and we've had a chance to hear from the experts. 
So, with that, I'd just say thank you, Mr. Chairman, for your 
expedited consideration of the bill and look forward to working 
with you and all the colleagues on the Subcommittee as we work 
for final passage of this bill.
    Chairman Calvert. I'd like to thank the gentleman for his 
good work in bringing this bill forward today; it's good 
legislation.
    Chairman Calvert. And we'll now consider H.R. 1753, the 
Methane Hydrate Research and Development Act of 1999. I would 
like to ask unanimous consent that the first reading of the 
bill be dispensed with. The bill will be considered as read and 
open to amendment at any point.
    [The information follows:]
    
    
    Chairman Calvert. And the bill is open for amendment. I 
intend to offer a manager's amendment to H.R. 1753 with the 
support of Mr. Doyle and Ranking Minority Member, Mr. Costello. 
The amendment is in the packet before each member. This 
amendment makes technical changes to the bill, as introduced. 
It strikes the word ``methane'' in all but section 4 and 
inserts the word ``gas'' in lieu thereof. It also strikes 
section 2.6, the definition of methane hydrates. The amendment 
eliminates restrictive language by broadening the scope of 
research to include the entire family of gas hydrates rather 
than just methane hydrates.
    The clerk will report the amendment.
    The Clerk. ``Amendment to H.R. 1753 offered by Mr. Calvert, 
Mr. Doyle, and Mr. Costello.''
    Chairman Calvert. I ask unanimous consent to dispense with 
the reading.
    [The information follows:]

                         Amendment to H.R. 1753

          Offered by Mr. Calvert, Mr. Doyle, and Mr. Costello

    Strike ``methane'' each place it appears in the bill except 
in section 4, and insert in lieu thereof ``gas''.
    Strike paragraph (6) of section 2, and redesignate 
subsequent paragraphs accordingly.

    Chairman Calvert. Also, without objection, the amendment 
will be considered en bloc.
    Is there further discussion?
    All those in favor say aye.
    Those opposed, no.
    The ayes have it, and the amendment is agreed to.
    Are there any other amendments?
    [No response.]
    Okay, no other amendments.
    Mr. Rohrabacher. Mr. Chairman.
    Chairman Calvert. Yes? I have a title amendment that I will 
be offering.
    Mr. Rohrabacher. Before we move on to the final vote, I 
would just like to emphasize what I mentioned in our hearing--
--
    Chairman Calvert. The gentleman is recognized.
    Mr. Rohrabacher [continuing]. That this really does 
exemplify the bipartisan nature of this Committee. Don't want 
to rub anything in,but when we were not in charge of the 
Committee, we didn't get opportunities like this a lot of 
times. We would not have our bills move forward like this, and 
I know that some Members in Congress, for example, served for 
20 years under the Democrats and never got a bill to the Floor, 
and I think it's--I hope whenever the pendulum swings back in 
the other direction that we will continue to have 
bipartisanspirit on both sides of the House.
    Mr. Doyle. Mr. Chairman, when we take over next year, I'm 
going to let all of Dana's bills on the Floor. [Laughter.]
    Mr. Rohrabacher. But I do commend Mr. Doyle for the time 
and effort he's put in this. Obviously, this is something that 
can be of great benefit to our country, uplifting the well-
being of our people, improving the environment, if not global 
warming--if not, even if we disagree on that as the Chairman 
pointed out--this has the potential of just purifying the air, 
helping the air be pure which is important to all of us. So, I 
think this exemplifies the very best bipartisan spirit and also 
the multifaceted nature of these decisionmakings. So, thank you 
very much, Mr. Chairman, and thank you, Mr. Doyle.
    Mr. Calvert. I thank the gentleman. Any other comments 
before I go to the title amendment?
    I intend to offer a title amendment to H.R. 1753 with the 
support of Mr. Doyle and the Ranking Minority Member, Mr. 
Costello. The amendment is in the package before each member. 
This amendment strikes the word ``methane'' and inserts the 
word ``gas'' in its place.
    The clerk will report the amendment.
    The Clerk. ``Title amendment to H.R. 1753----''
    Mr. Calvert. I'd ask unanimous consent to dispense with the 
reading.
    [The information follows:]

                      Title Amendment to H.R. 1753

          Offered by Mr. Calvert, Mr. Doyle, and Mr. Costello

    Amend the title by striking ``methane'' and inserting 
``gas''.

    Mr. Calvert. There is no further discussion.
    All those in favor say aye.
    Those opposed, no.
    The amendment is agreed to, and we have a motion to report 
the bill.
    Mr. Costello. Mr. Chairman, I move that the Subcommittee 
favorably report H.R. 1753, as amended, to the full Committee 
and that the Chairman take all such necessary steps to bring 
the bill before the full Committee for consideration. Further, 
I ask unanimous consent that the staff be instructed to make 
all necessary and conforming changes to the bill.
    Mr. Calvert. If there are no further amendments, hearing 
none, the question is on the bill, H.R. 1753, the Gas Hydrate 
Research and Development Act of 1999, as amended.
    All those in favor say aye.
    All those opposed, no.
    In the opinion of the Chair, the ayes have it. The 
Subcommittee has heard the motion.
    Those in favor will--hold on--I move the Subcommittee 
report the bill, H.R. 1753, that's the Gas Hydrate Research and 
Development Act of 1999, as amended, to the full Committee. The 
Subcommittee has heard the motion.
    Those in favor will say aye.
    Those opposed, no.
    The ayes have it; the motion's agreed to. Without 
objection, the motion to reconsider is laid upon the table.

            XIX. Proceedings of Committee on Science Markup

    Chairman Sensenbrenner. Next bill up is the Gas Hydrate 
Research and Development Authorization Act of 1999.
    [The bill H.R. 1753 follows:]
    
    
    Chairman Sensenbrenner. H.R. 1753, as amended by the 
Subcommittee on Energy and Environment on May 12, directs the 
Secretary of Energy in consultation with the Secretaries of 
Defense and the Interior and the Director of NSF to commence a 
program of gas hydrate R&D. It authorizes the Secretary of 
Energy $5 million for Fiscal Year 2000, $7.5 million for Fiscal 
Year 2001, and $10 million for each of Fiscal Year 2002 through 
Fiscal Year 2004 to carry out the program.
    The bill also authorizes the Secretary of Energy to award 
grants or contracts to or enter into cooperative agreements 
with institutions of higher education and industrial 
enterprises to conduct gas hydrate R&D. It requires that all 
such awards be made available based upon a competitive merit 
review process, limits administrative expenses to not more than 
5 percent, and prohibits any funds from being used either for 
the construction of a new building or alteration of an existing 
building, including site grading and improvement and architect 
fees.
    It allows the Secretary of the Interior to award gas 
hydrate R&D contracts and grants and enter into cooperative 
agreements with qualified entities under the Marine Mineral 
Resources Research Act of 1996 and sunsets the Gas Hydrate R&D 
Program after the end of Fiscal Year 2004.

Statement of Chairman F. James Sensenbrenner, Jr., House Authorization 
                              Act of 1999

 h.r. 1753--gas hydrate research and development authorization act of 
                                  1999
    H.R. 1753, as amended by the Subcommittee on Energy and Environment 
on May 12, directs the Secretary of Energy, in consultation with the 
Secretaries of Defense and the Interior, and the Director of the 
National Science Foundation, to commence a program of gas hydrate R&D. 
It authorizes the Secretary of Energy $5.0 million for FY 2000, $7.5 
million for FY 2001, and $10.0 million for each of FY 2000-FY 2004 to 
carry out the Program. The bill also:
      Authorizes the Secretary of Energy to award grants or 
contracts to, or enter into cooperative agreements with, institutions 
with, institutions of higher education and industrial enterprises to 
conduct gas hydrate R&D.
     Requires that all such awards shall be made available 
based on a competitive merit-review process;
     Limits administrative expenses to not more than 5 percent 
and prohibits any funds from being used for either the construction of 
a new building or alteration of an existing building (including site 
grading and improvement and architect fees);
     Allows the Secretary of the Interior to award gas hydrate 
R&D contracts and grants to, and to enter into cooperative agreements 
with, qualified entities under the Marine Mineral Resources Research 
Act of 1996; and;
     Sunsets the gas hydrate R&D program after the end of FY 
2004.

    Chairman Sensenbrenner. The Chair yields the balance of his 
time to the gentleman from California, Mr. Calvert, to make 
whatever comments he is inspired to.
    Mr. Calvert. Thank you, Mr. Chairman. I didn't think being 
here in Washington I would advocate more gas, but in this case, 
I do and recommend its passage.
    Chairman Sensenbrenner. OK. The Chair yields back the 
balance of his time and recognizes the gentleman from Illinois, 
Mr. Costello, the Ranking Member of the Subcommittee.
    Mr. Costello. Mr. Chairman, thank you.
    Mr. Chairman, you have accurately described the bill. I 
want to commend you and Mr. Doyle for working hard on this 
legislation and yield the balance of my time to Mr. Doyle.
    Chairman Sensenbrenner. The gentleman from Pennsylvania?
    Mr. Doyle. Thank you very much, Mr. Chairman.
    Mr. Chairman, I'll be brief. I just would like to express 
my appreciation for the strong cooperation I've received in 
working with you, Subcommittee Chairman Ken Calvert, and of 
course my Ranking Member Jerry Costello, and all the staff 
involved on both sides.
    As you know, methane hydrates, or as we now have decided to 
refer to them, gas hydrates, are potentially a new source of 
tremendous amounts of clean burning energy, and I think if you 
look at things very broadly, this is the kind of far-sighted 
research that we're all working to promote during our service 
on the Committee.
    I look forward to continuing to work with you, Mr. Chairman 
and all our colleagues on the Committee to see this bill or 
similar language put into law.
    Thank you, and I yield back my time.
    Chairman Sensenbrenner. Okay. The gentleman's time has 
expired.
    Are there any amendments to the bill?
    Hearing none, in order to make the paper record complete, 
without objection, the amendment in the nature of a substitute 
adopted by the Subcommittee on Energy and Environment is 
adopted, and the question is adoption of the bill.
    Those in favor will signify by saying aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the Chair 
recognizes the gentleman from Illinois, Mr. Costello, for the 
reporting motion.
    Mr. Costello. Mr. Chairman, I move that the Committee 
favorably report H.R. 1753, as amended, to the House with a 
recommendation that the bill, as amended, do pass.
    Furthermore, I move that the staff be instructed to prepare 
the legislative report and make necessary technical and 
conforming amendments and that the Chairman take all necessary 
steps to bring the bill before the House for consideration.
    Chairman Sensenbrenner. You've heard the motion. Is there 
any discussion?
    The Chair notes the presence of a reporting quorum.
    Those in favor of the motion to report the bill favorably 
will signify by saying aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the bill 
is favorably reported.
    Without objection, the bill will be reported in the form of 
a single amendment in the nature of a substitute, incorporating 
the amendment that was adopted today.
    Without objection, members will have two days in which to 
file additional supplemental minority or dissenting views on 
the bill, and, without objection, the Chairman will be given 
permission to make motions in the House to go to conference 
with the Senate on this legislation.

                                  
