[Senate Report 106-232]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 448
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-232

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



 
          NATIONAL MATERIALS CORRIDOR PARTNERSHIP ACT OF 2000

                                _______
                                

                 March 9, 2000.--Ordered to be printed

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 397]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 397) to authorize the Secretary of Energy 
to establish a multiagency program in support of the Materials 
Corridor Partnership Initiative to promote energy efficient, 
environmentally sound economic development along the border of 
Mexico through the research, development, and use of new 
materials technology, having considered the same, reports 
favorably thereon with an amendment and an amendment to the 
title and recommends that the bill, as amended, do pass.
    The amendments are as follows:
    1. 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 ``National Materials Corridor and US-
Mexico Border Technology Partnership Act of 2000''.

SEC. 2. FINDINGS.

    Congress finds that--
          (1) the 2000 mile long United States-Mexico border region, 
        extending 100 kilometers north and south of the international 
        boundary has undergone rapid economic growth that has provided 
        economic opportunity to millions of people;
          (2) the border region's rapid economic growth has 
        unfortunately created serious problems including pollution, 
        hazardous wastes, and the inefficient use of resources that 
        threaten people's health and the prospects for long-term 
        economic growth in the region;
          (3) there are a significant number of major institutions in 
        the border States of both countries currently conducting 
        research, development and testing activities in technologies 
        that might help alleviate these problems;
          (4)(A) these new technologies may provide major opportunities 
        for significantly--
                  (i) minimizing industrial wastes and pollution that 
                may pose a threat to public health;
                  (ii) reducing emissions of atmospheric pollutants;
                  (iii) using recycled natural resources as primary 
                materials for industrial production; and
                  (iv) improving energy efficiency; and
          (B) such advances will directly benefit both sides of the 
        United States-Mexico border by encouraging energy efficient, 
        environmentally sound economic development that improves the 
        health and protects the natural resources of the border region;
          (5) in August 1998, the binational United States-Mexico 
        Border Region Hazardous Wastes Forum, organized by the 
        Department of Energy's Carlsbad Area Office, resulted in a 
        consensus of experts from the United States and Mexico that the 
        Department of Energy's science and technology could be 
        leveraged to address key environmental issues in the border 
        region while fostering further economic development of the 
        border region;
          (6) the Carlsbad Area Office, which manages the Waste 
        Isolation Pilot Plant in Carlsbad, New Mexico, is well suited 
        to lead a multiagency program focused on the problems of the 
        border region given its significant expertise in hazardous 
        materials and locations near the border;
          (7)(A) promoting clean materials industries in the border 
        region that are energy efficient has been identified as a high 
        priority issue by the United States-Mexico Foundation for 
        Science Cooperation; and
          (B) at the 1998 discussions of the United States-Mexico 
        Binational Commission, Mexico formally proposed joint funding 
        of a ``Materials Corridor Partnership Initiative'', proposing 
        $1,000,000 to implement the Initiative if matched by the United 
        States;
          (8) recognizing the importance of materials processing, 
        research institutions in the border States of both the United 
        States and Mexico, in conjunction with private sector partners 
        of both nations, and with strong endorsement from the Government 
        of Mexico, in 1998 organized the Materials Corridor Council to 
        implement a cooperative program of materials research and 
        development, education and training, and sustainable industrial 
        development as part of the Materials Corridor Partnership 
        Initiative; and
          (9) successful implementation of this Act would advance 
        important Untied States energy, environmental, and economic 
        goals not only in the United States-Mexico border region but 
        also serve as a model for similar collaborative, transnational 
        initiatives in other regions of the world.

SEC. 3. PURPOSE.

    The purpose of this Act is to establish a multiagency program to--
          (1) alleviate the problems caused by rapid economic 
        development along the United States-Mexico border;
          (2) support the Materials Corridor Partnership Initiative 
        referred to in section 2(7); and,
          (3) promote energy efficient, environmentally sound economic 
        development along that border through the development and use 
        of new technologies, particularly hazardous waste and materials 
        technologies.

SEC. 4. DEFINITIONS.

    In this Act:
          (1) Program.--The term ``program'' means the program 
        established under section 5(a).
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 5. ESTABLISHMENT AND IMPLEMENTATION OF THE PROGRAM.

    (a) Establishment.--
          (1) In general.--The Secretary shall establish a multiagency 
        program to--
                  (A) alleviate the problems caused by rapid economic 
                development along the United States-Mexico border, 
                particularly those associated with public health and 
                environmental security;
                  (B) support the Materials Corridor Partnership 
                Initiative; and,
                  (C) promote energy efficient, environmentally sound 
                economic development along that border through the 
                development and use of new technologies, particularly 
                hazardous waste and materials technologies.
          (2) Considerations.--In developing the program, the Secretary 
        shall give due consideration to the proposal made to the United 
        States-Mexico Binational Commission for the Materials Corridor 
        Partnership Initiative.
          (3) Program management.--This program shall be managed for 
        the Secretary by the Department's Carlsbad Area Office, with 
        support, as necessary, from the Albuquerque Operations Office.
      (b) Participation of Other Federal Agencies and Commissions.--The 
Secretary shall organize and conduct the program jointly with--
          (1) the Department of State;
          (2) the Environmental Protection Agency;
          (3) the National Science Foundation;
          (4) the National Institute of Standards and Technology;
          (5) the United States-Mexico Border Health Commission; and
          (6) any other departments, agencies, or commissions the 
        participation of which the Secretary considers appropriate.
    (c) Participation of the Private Sector.--When appropriate, funds 
made available under this Act shall be made available for technology 
deployment, research, and training activities that are conducted with 
the participation and support of private sector organizations located 
in the United States and, subject to section 7(c)(2), Mexico, to 
promote and accelerate in the United States-Mexico border region the 
use of energy efficient, environmentally sound technologies and other 
advances resulting from the program.
    (d) Mexican Resource Contributions.--The Secretary shall--
          (1) encourage public, private, nonprofit, and academic 
        organizations located in Mexico to contribute significant 
        financial and other resources to the program; and
          (2) take any such contributions into account in conducting 
        the program.
    (e) Transfer of Technology From National Laboratories.--In 
conducting the program, the Secretary shall emphasize the transfer and 
use of technology developed by the national laboratories of the 
Department of Energy.

SEC. 6. ACTIVITIES AND MAJOR PROGRAM ELEMENTS.

    (a) Activities.--Funds made available under this Act shall be made 
available for technology deployment, research, and training activities, 
particularly related to hazardous waste and materials technologies, 
that will alleviate the problems caused by rapid economic development 
along the United States-Mexico border, that focus on issues related to 
the protection of public health and environmental security, and that 
promote--
          (1) minimization of industrial wastes and pollutants;
          (2) reducing emissions of atmospheric pollutants;
          (3) use of recycled resources as primary materials for 
        industrial production; and
          (4) improvement of energy efficiency.
    (b) Major Program Elements.--
          (1) In general.--The program shall have the following major 
        elements, all of which shall emphasize hazardous waste and 
        materials technologies:
                  (A) Technology Deployment, focused on the clear, 
                operational demonstration of the utility of well 
                developed technologies in new organizations or 
                settings.
                  (B) Research, focused on developing, maturing, and 
                refining technologies to investigate or improve the 
                feasibility or utility of the technologies.
                  (C) Training, focused on training businesses, 
                industries, and their workers in the border region in 
                energy efficient, environmentally sound technologies 
                that minimize waste, decrease public health risks, 
                increase recycling, and improve environmental security.
          (2) Technology deployment and research.--Projects under 
        paragraph (1)(A) and(1)(B) should typically involve significant 
        participation from private sector organizations that would use 
        or sell such a technology.

SEC. 7. PARTICIPATION OF DEPARTMENTS, AGENCIES, AND COMMISSIONS OTHER 
                    THAN THE DEPARTMENT OF ENERGY.

    (a) Agreement.--Not later than 120 days after the date of enactment 
of this Act, the Secretary shall enter into an agreement with the 
departments, agencies, and commissions referred to in section 5(b) on 
the coordination and implementation of the program.
    (b) Actions of Departments, Agencies, and Commissions.--Any action 
of a department, agency, or commission under an agreement under 
subsection (a) shall be the responsibility of that department, agency, 
or commission and shall not be subject to approval by the Secretary.
    (c) Use of Funds.--
          (1) In general.--The Secretary and the departments, agencies, 
        and commissions referred to in section 5(b) may use funds made 
        available for the program for technology deployment, research, 
        or training activities carried out by--
                  (A) State and local governments and academic, 
                nonprofit, and private organizations located in the 
                United States; and
                  (B) State and local governments and academic, 
                nonprofit, and private organizations located in Mexico.
          (2) Condition.--Funds may be made available to a State of 
        local government or organization located in Mexico only if a 
        government or organization located in Mexico (which need not be 
        the recipient of the funds) contributes a significant amount of 
        financial or other resources to the project to be funded.
    (d) Transfer of Funds.--The Secretary may transfer funds to the 
departments, agencies, and commissions referred to in section 5(b) to 
carry out the responsibilities of the departments, agencies, and 
commissions under this Act.

SEC. 8. PROGRAM ADVISORY COMMITTEE.

    (a) Establishment.--
          (1) In general.--The Secretary shall establish an advisory 
        committee consisting of representatives of the private, 
        academic, and public sectors.
          (2) Considerations.--In establishing the advisory committee, 
        the Secretary shall take into consideration organizations in 
        existence on the date of enactment of this Act, such as the 
        Materials Corridor Council and the Business Council for 
        Sustainable Development--Gulf Mexico.
    (b) Consultation and Coordination.--Departments, agencies, and 
commissions of the United States to which funds are made available 
under this Act shall consult and coordinate with the advisory committee 
in identifying and implementing the appropriate types of projects to be 
funded under this Act.

SEC. 9. FINANCIAL AND TECHNICAL ASSISTANCE.

    (a) In General.--Federal departments, agencies, and commissions 
participating in the program may provide financial and technical 
assistance to other organizations to achieve the purpose of the 
program.
    (b) Technology Deployment and Research.--
          (1) Use of cooperative agreements.--
                  (A) In general.--Federal departments, agencies, and 
                commissions shall, to the extent practicable, use 
                cooperative agreements to fund technology deployment 
                and research activities by organizations outside the 
                Federal Government.
                  (B) National laboratories.--In the case of a 
                technology deployment or research activity conducted by 
                a national laboratory, a funding method other than a 
                cooperative agreement may be used if such a funding 
                method would be more administratively convenient.
          (2) Federal share.--
                  (A) In general.--The Federal Government shall pay not 
                more than 50 percent of the cost of technology 
                deployment or research activities under the program.
                  (B) Qualified funding and resources.--No funds or 
                other resources expended either before the start of a 
                project under the program or outside the scope of work 
                covered by the funding method determined under 
                paragraph (1) shall be credited toward the non-Federal 
                share of the cost of the project.
    (c) Training.--
          (1) In general.--Federal departments, agencies, and 
        commissions shall, to the extent practicable, use grants to 
        fund training activities by organizations outside the Federal 
        Government.
          (2) National laboratories.--In the case of a training 
        activity conducted by a national laboratory, a funding method 
        other than a grant may be used if such a funding method would 
        be more administratively convenient.
          (3) Federal share.--The Federal Government may fund 100 
        percent of the cost of the training activities of the program.
    (d) Selection.--All projects funded under contracts, grants, or 
cooperative agreements established under this program shall, to the 
maximum extent practicable, be selected in an open, competitive process 
using such selection criteria as the Secretary, through his program 
management, and in consultation with the departments, agencies, and 
commissions referred to in section 5(b), determines to be appropriate. 
Any such selection process shall weigh the benefits to the border 
region.
    (e) Accounting Standards.--
          (1) Waiver.--To facilitate participation in the program, 
        Federal departments, agencies, and commissions may waive any 
        requirements for Government accounting standards by 
        organizations that have not established such standards.
          (2) Gaap.--Generally accepted accounting principles shall be 
        sufficient for projects under the program.
    (f) No Construction.--No program funds may be used for 
construction.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$10,000,000 for each of fiscal years 2000 through 2004.

    2. Amend the title so as to read: ``To authorize the 
Secretary of Energy to establish a multiagency program to 
alleviate the problems caused by rapid economic development 
along the United States-Mexico border, particularly those 
associated with public health and environmental security, to 
support the Materials Corridor Partnership Initiative, and to 
promote energy efficient, environmentally sound economic 
development along that border through the development and use 
of new technology, particularly hazardous waste and materials 
technology.''.

                         purpose of the measure

    The purpose of S. 397, as ordered reported, is to establish 
a binational, multi-agency program, led by the Department of 
Energy, to promote environmentally sound economic development 
along the U.S.-Mexican border that minimizes negative impacts 
on public health and improves energy efficiency through 
application of improved technologies, with emphasis on 
research, development and use of materials and hazardous waste 
technology.

                          background and need

    The North American Free Trade Agreement and the 
globalization of our economy have created a surge of economic 
growth along the 2000 mile U.S.-Mexican border. Over the last 
15 years, the population in the 200km wide region straddling 
the border has roughly doubled and industrial output has grown 
more than 150 percent. The border region has become a major 
center for manufacturing in many industries, such as 
microelectronics and auto parts, as well as a center for many 
materials industries, such as metals and plastics. However, 
with this economic growth have come serious problems. 
Pollution, hazardous wastes, and the inefficient use of 
resources threaten people's health and the prospects for long-
term economic growth. Disease rates for selected illnesses are 
significantly elevated near the border. There are numerous 
``nonattainment'' regions for carbon monoxide and ozone along 
the border. Border industries produce a large variety of 
worrisome effluents that enter the air, water, and soil. 
Pollution needs no passport, of course, so problems on one side 
of the border impact the other.
    Many technologies, developed in both countries, could be 
applied to mitigate and address these border issues. Given the 
crucial role materials processing plays in border 
manufacturing, better materials technologies may offer one of 
the more powerful ways to alleviate these problems by improving 
energy efficiency and reducing pollutants. Hence, the basic 
idea behind S. 397 is to leverage environmental research within 
the Department of Energy and materials research in the border 
states in a binational program to promote clean, sustainable 
economic development. These ideas have progressed since 1993. 
Mexico's economic crisis of the early 90's introduced delays, 
but in 1998 the Mexican government revived the idea, proposing 
a ``Materials Corridor Partnership Initiative'' to the U.S.-
Mexican Binational Commission. Mexico offered $1 million of 
funding if the U.S. would do the same. While an informal group 
of research organizations, the ``Materials Corridor Council,'' 
organized itself in response, the U.S. Government has yet to 
pick up on the Mexican offer. Most recently, an international 
conference organized by the Carlsbad Office of the Department 
of Energy focused attention on public health issues in the 
border region and the need for action. S. 397 is aimed at 
responding to these challenges, while also encouraging 
evaluation of technologies developed by the Department of 
Energy for their own cleanup missions in addressing border 
issues.

                          legislative history

    S. 397 was introduced by Senator Bingaman on February 10, 
1999. The Subcommittee on Energy Research, Development, 
Production and Regulation held a hearing on October 7, 1999. At 
its business meeting on February 10, 2000, the Committee on 
Energy and Natural Resources ordered S. 397, as amended, 
reported favorably.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on February 10, 2000, by a voice vote 
with a quorum present, recommends that the Senate pass S. 397 
with an amendment and an amendment to the title.

                      section-by-section analysis

    Section 1 designates the title of the Act as the ``National 
Materials Corridor and US-Mexico Border Technology Partnership 
Act of 2000.''
    Section 2 sets forth findings.
    Section 3 states the purpose of the Act.
    Section 4 defines terms used in the Act.
    Section 5(a) directs the Secretary of Energy to establish a 
multiagency program and to manage it through the Department's 
Carlsbad Area Office.
    Subsection (b) directs the Secretary to organize and 
conduct the program jointly with the Department of State, the 
Environmental Protection Agency, the National Science 
Foundation, the National Institute of Standards and Technology, 
the United States-Mexico Border Health Commission, and other 
appropriate agencies.
    Subsection (c) provides for private sector participation in 
the program.
    Subsection (d) directs the Secretary to encourage financial 
contributions from public and private organizations in Mexico.
    Subsection (e) directs the Secretary to emphasize the 
transfer and use of technology developed by the national 
laboratories.
    Section 6 identifies three major program elements 
emphasizing hazardous waste and materials technology: (1) 
technology deployment to demonstrate the utility of well 
developed technologies in new organizations; (2) research to 
refine new technologies; and (3) training in technologies that 
minimize waste, decrease public health risks, increase 
recycling, and improve environment security.
    Section 7 provides for the participation of departments, 
agencies, and commissions, other than the Department of Energy, 
in the program. It allows program funds to be made available to 
a State or local government or organization located in Mexico 
only if a government or organization located in Mexico 
contributes a significant amount of financial or other 
resources to the project.
    Section 8 directs the Secretary of Energy to establish an 
advisory committee consisting of representatives of the 
private, academic, and public sectors.
    Section 9(a) authorizes Federal participants to provide 
financial and technical assistance to other organizations to 
achieve the purpose of the program.
    Subsection (b)(1) directs the Federal Government, to the 
extent practicable, to use cooperative agreements to fund 
technology deployment and research activities by organizations 
outside the Federal Government.
    Subsection (b)(2) prohibits Federal participants from 
paying more than 50 percent of the cost of technology 
deployment or research activities under the program.
    Subsection (c) directs Federal participants, to the extent 
practicable, to use grants to fund training activities by non-
Federal organizations.
    Subsection (d) requires projects to be selected in an open, 
competitive process.
    Subsection (e) provides for the use of generally accepted 
accounting principles and allows Federal participants to waive 
the use of Government accounting standards by organizations 
that have not established such standards.
    Subsection (f) prohibits the use of program funds for 
construction.
    Section 10 authorizes the appropriation of $10,000,000 
annually for fiscal year 2000 through 2004.

                   cost and budgetary considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out this measure.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the provisions of the bill. Therefore, there would be no impact 
on personal privacy.
    Little, if any additional paperwork would result from the 
enactment of this measure.

                        executive communications

    The pertinent communications received by the Committee from 
the Department of Energy follow:

 Statement of David L. Goldwyn, Assistant Secretary for International 
                   Affairs, U.S. Department of Energy

    Good morning Mr. Chairman, Senator Bingaman and other 
members of the Subcommittee. I appreciate the opportunity to 
appear before you today to discuss the Department of Energy's 
views on S. 397, the National Materials Corridor Partnership 
Act.
    This bill would establish a multi-agency program, led by 
the Department of Energy, to promote energy efficient, 
environmentally sound economic development along the U.S.-
Mexican border through the research, development, and use of 
new materials technology. The Administration agrees with the 
goals of the bill that this country, in cooperation with 
Mexico, needs to do more to address the economic, 
infrastructure, and environmental issues of the Southwest 
Border region.
    According to the General Accounting Office's July 1999 
report titled, U.S.-Mexico Border: Issues and Challenges 
Confronting the United States and Mexico, the U.S. border 
region has high unemployment and poverty levels and faces a 
number of infrastructure, health, environmental, immigration, 
and economic development challenges. These challenges are 
expected to be exacerbated by the rapid growth in the region's 
population--the population in border communities is growing 
twice as fast and is much younger than in the rest of the 
country.
    The Administration cooperates with Mexico in a broad range 
of energy and science and technology activities. 
Thiscooperation is aimed at finding solutions to problems facing both 
countries, particularly in the areas of waste management and energy, 
and in providing a basis for continued and sustainable economic growth. 
In the U.S.-Mexico Binational Commission (BNC), the Department of 
Energy co-chairs the energy Working Group with Mexico's Secretariat of 
Energy. The Department also participates in the BNC's Science and 
Technology Committee.
    Specifically along the Southwest Border, the Administration 
is working to provide a more rapid and integrated Federal 
response to challenges in the region. On May 25, 1999, the 
President signed an Executive Order establishing an interagency 
task force on the economic development of the Southwest Border. 
This Task Force, of which the Department is an active member, 
is examining existing Federal agency programs, policies, 
research, and analyses that relate to the Southwest Border; 
working to coordinate the activities for the various Federal 
agencies; and developing short-term and long-term options for 
promoting sustainable economic development in the Region. These 
efforts will be conducted in concert with State, tribal, and 
local governments, community leaders, Members of Congress, the 
private sector, and other interested parties. The Task Force is 
expected to submit to the Vice President by November 15, 1999, 
an interim report on its activities. This Task Force is the 
appropriate vehicle to address the specific concerns raised by 
S. 397.
    We believe additional statutory authority is not required 
to reach the goals promoted by S. 397; as with many other 
initiatives funding is often the limiting factor. The 
Department is undertaking a variety of domestic and 
international activities that serve to accomplish the goals of 
this legislation, which I will briefly highlight later in my 
remarks. At the same time, my office along with the Secretary's 
office is leading the Department's effort to support President 
Clinton's Executive Order. As called for by the Executive 
Order, the Department is currently conducting an analysis of 
existing programs and policies that relate to the Southwest 
Border. For example, projects that are being or can potentially 
be applied to the border region include:
    We are pursuing materials research with potentially direct 
application to the border region. Through the Department's 
Office of Science, we are spending an excess of $20 million 
annually on an extensive program of materials research at both 
Sandia and Los Alamos National laboratories and at universities 
and educational institutions in Arizona, California, New 
Mexico, and Texas. Our basis materials science research 
includes research on the physics and chemistry of ceramics, 
adhesion phenomena, thin films, polymer structures among other 
things. Additionally, through the Office of Energy Efficiency 
and Renewable Energy, our national laboratories are pursuing 
applied research in a number of areas that could have important 
uses in the border region. For example, we are funding research 
on energy efficient electrochemical reactors that can 
potentially save up to 50 percent of the electric energy used 
by the chemical industry. Our Los Alamos laboratory is 
partnering with private industry to develop new materials that 
will reduce energy consumption, improve quality and reduce cost 
of fiberglass and fiberglass product production.
    In addition to DOE's work, the National Science Foundation 
is co-sponsoring a series of international workshops on 
materials research designed to stimulate collaboration among 
materials researchers and create networks linking the 
participating countries. One of the key goals of this 
collaboration is to develop a worldwide electronic net to 
enhance international materials research cooperation. The first 
leg of this system, the NAFTA NET, will be fully operational in 
the near future. The U.S., Mexico, and Canada have been active 
participants in this effort.
    We are working to promote scientific and information 
exchanges in the region by including Mexican scientists in our 
materials research program nationwide. In 1996, a workshop at 
Argonne National Laboratory to encourage such participation 
attracted about 70 scientists from Mexican institutions, 
including the Advanced Materials Research Center in Chihuahua. 
As a result, several Mexican scientists are now collaborating 
with scientists at DOE facilities. A follow-up workshop is 
planned for next year.
    We are working to reduce the region's air pollution 
problems. The existing bilateral agreement on renewable energy 
and energy efficiency is promoting the use of clean, affordable 
energy along the border. In partnership with industry, the 
Department is working to develop new, advanced energy 
technologies that operate with higher efficiencies and 
performance characteristics, both for grid and remote area 
applications, that result in lower emissions with improved 
economics. We have worked on the critical issue of air 
pollution in Mexico City through partnerships between the 
Department, other U.S. Government agencies, and Mexican 
government organizations. We are looking at options for 
applying research that is being conducted in this area at the 
Pacific Northwest, Los Alamos, and Argonne National 
Laboratories that could be applied to address air pollution 
problems in the border region.
    We are working to provide economically viable alternatives 
to current waste treatment and disposal methods used in 
northern Mexico. The Department has developed several 
groundwater remediation and waste disposal technologies that 
may be appropriate to transfer for application to these 
problems along the border. Groundwater remediation technologies 
being developed by the Uranium Mill Tailing Remedial Action 
Groundwater Projects are available for use to address border 
region needs. The Department is also exploring how its 
groundwater monitoring equipment could be used by border 
communities on a cost-recovery basis when not in use by DOE.
    We are working with Mexico to promote the use of the 
cleanest and most efficient energy technologies and their use 
in the transportation, power generation, and end use sectors. 
We are cooperating under an active Agreement on Energy 
Cooperation in energy efficiency, renewable energy, and energy-
related waste remediation, and we are currently negotiating 
additional areas of cooperation on clean energy. DOE and the 
Mexican Secretariat of Energy have established a High Level 
Working Group on Sustainable Energy to discuss the use of clean 
energy technologies to address environmental issues. Moreover, 
the Department, in cooperation with the U.S. Agency for 
International Development and the Mexican Government, is 
demonstrating the benefits of photovoltaic and wind 
technologies in rural environments in border states. In this 
effort, water pumping systems for livestock are being installed 
on a pilot basis in several border states over the next two 
years.
    We are trying to facilitate the integration of the Mexican 
and U.S. energy markets to the benefit of customers in both 
countries. We have formed a bilateral working group to discuss 
ways to promote cross border electricity trade.
    We are working with other agencies and the Mexican 
government on research and education efforts. These efforts 
include such items as the joint DOE-National Science Foundation 
Pan American Advanced Studies Institutes short courses on 
topics at the forefront of research such as ``Atom and 
Molecules in a New Light'' Institute for which the University 
of New Mexico recently received a grant, and ``Modern Trends in 
Heat Transfer'' Institute which will partner a Mexican 
university with the University of Notre Dame. These Institutes 
often result in further collaborations on materials science, 
among other disciplines.
    We recognize that the environmental, economic, and 
technological needs along the border are great. And are working 
to bring greater focus and leadership to the Department of 
Energy's multifaceted resources and programs in these areas. 
The President's Executive Order on the Economic Development of 
the Southwest Border provides an opportune vehicle to 
coordinate efforts, not only within agencies but between 
agencies. We look forward to working with our sister agencies 
to develop and recommend short-term and long-term options for 
promoting sustainable economic development in the region and to 
do our part to coordinate and collaborate on research and 
demonstration priorities that integrate Administration 
initiatives and programs, as called for by the Task Force.
    We have already taken action to put in place a structure to 
help us achieve the goals promoted by S. 397 and the 
President's Executive Order.
    First, the Secretary has made border issues a priority by 
assigning a Senior Policy Advisor to work with my office, the 
Office of International Affairs, to coordinate the Department's 
response to the goals and objectives of the President's 
Executive Order. My office is uniquely qualified to coordinate 
cross-cutting efforts that come to bear on all of the 
department's program offices in order to maintain a focused and 
integrated approach.
    Second, in June, Secretary Richardson established a 
Department of Energy Working Group on Mexico led by the Office 
of International Affairs to coordinate DOE programs and 
initiatives involving Mexico and to ensure that U.S. interests 
and Department priorities are promoted in a strategic manner. 
This group will also include a Southwest Border Initiative 
subgroup to help implement the Department's responsibilities 
under the Executive Order and will focus specifically on 
activities relevant to the border region, including materials 
research and technology transfer.
    Third, we plan to work with the local leadership, 
stakeholders, and the private sector in the border region to 
obtain their input as we set our materials research and other 
research and development priorities. We plan to use upcoming 
conferences and other forums promoted by the Executive Order's 
Task force to dialogue as opportunities to exchange information 
with locally led efforts.
    Fourth, we are working to address previous barriers to 
technology transfer. In response to a June 1999 internal study 
reviewing the Department's technology transfer policies and 
procedures, the Secretary has formed a senior level working 
group and designated one of his senior advisors to serve as the 
Department's focal point for addressing technology transfer 
issues and to strengthen technology partnerships. Over the next 
few months, the Department will be developing and updating its 
guidelines and procedures to better ensure consistency and 
uniformity across the complex; we will improve communication 
with the private sector to make partnership opportunities more 
accessible, easier to identify and quicker to initiate; and we 
will be establishing ombuds capabilities to assist industry in 
resolving any issues that may arise.
    Fifth, we will continue our educational and collaborative 
efforts with Mexican and U.S. institutions both in the border 
region, and elsewhere, that are engaged in activities of 
concern to the region. In this regard, we have invited Mexican 
participation in this month's 11th Annual Technical Information 
Exchange workshop. The Department is proposing to include the 
Mexican government in on-going DOE research and development on 
subsurface contaminants and site characterization and in 
subsequent technology demonstrations.
    Sixth, consistent with the provisions of S. 397, we are 
expanding our efforts with other Federal and international 
agencies on border issues. For example, DOE will be increasing 
its collaboration with the U.S. Environmental Protection Agency 
on energy issues in the U.S.-Mexico border region aimed at 
protecting and improving the environmental health while 
fostering sustainable development in the U.S.-Mexico border 
area.
    In conclusion, the Department is committed to using its 
resources to the fullest to help solve cross-border problems 
and to continue to promote supportive activities in cooperation 
with Federal agencies, the private sector, and states on both 
sides of the border. We can, I think, accomplish the objectives 
we all seek by making better use of existing mechanisms. We 
will be happy to work closely with the Senator and the 
Committee on ways to improve our activities in the border 
region. I will be happy to answer your questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by S. 397, as ordered 
reported.

                                  
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