[House Report 110-401]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-401

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



 
   INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT ACT OF 2007

                                _______
                                

October 22, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gordon of Tennessee, from the Committee on Science and Technology, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3775]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science and Technology, to whom was 
referred the bill (H.R. 3775) to support research and 
development of new industrial processes and technologies that 
optimize energy efficiency and environmental performance, 
utilize diverse sources of energy, and increase economic 
competitiveness, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.













                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................3
 III. Background and Need for the Legislation.........................3
  IV. Hearing Summary.................................................5
   V. Committee Actions...............................................6
  VI. Summary of Major Provisions of the Bill, As Reported............6
 VII. Section-by-Section Analysis (by Title and Section), As Reported.6
VIII. Committee Views.................................................7
  IX. Cost Estimate..................................................10
   X. Congressional Budget Office Cost Estimate......................10
  XI. Compliance with Public Law 104-4...............................11
 XII. Committee Oversight Findings and Recommendations...............12
XIII. Statement on General Performance Goals and Objectives..........12
 XIV. Constitutional Authority Statement.............................12
  XV. Federal Advisory Committee Statement...........................12
 XVI. Congressional Accountability Act...............................12
XVII. Earmark Identification.........................................12
XVIII.Statement on Preemption of State, Local, or Tribal Law.........12

 XIX. Changes in Existing Law Made by the Bill, as Reported..........12
  XX. Committee Recommendations......................................12
 XXI. Proceedings of the Subcommittee Markup.........................13
XXII. Proceedings of the Full Committee Markup.......................26
XXIII.Exchange of Letters............................................40


                              I. AMENDMENT

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Industrial Energy Efficiency Research 
and Development Act of 2007''.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) According to the Energy Information Administration's 2006 
        Annual Energy Review, the industrial sector in 2006 accounted 
        for more energy use (32 percent) than the residential (21 
        percent), commercial (18 percent), or transportation sector (29 
        percent).
          (2) The primary energy intensive industries vital to 
        maintaining our country's infrastructure and economic and 
        national security include steel, chemicals, metal casting, 
        forest products, glass, aluminum, petroleum refining, and 
        mining, as well as other energy intensive manufacturers.
          (3) The Department of Energy has demonstrated the success of 
        public-private partnerships with these industries resulting in 
        research, development, and deployment of new energy efficient 
        technologies which reduce emissions and improve manufacturing 
        competitiveness.
          (4) Innovations in manufacturing processes within these 
        industries may be translated into efficiency improvements in 
        buildings, transportation, and other economic sectors that 
        depend upon these industries.
          (5) While past public-private partnerships have resulted in 
        significant energy efficiency improvements in manufacturing 
        processes, there is a need for new technologies to achieve 
        continual energy efficiency improvements.
          (6) Innovations made in the last few decades assisted the 
        United States in remaining competitive in the global market. 
        Continued innovation in the areas of energy efficiency and 
        feedstock diversification are necessary to enable the United 
        States to maintain a competitive edge.
          (7) The Department of Energy should continue collaborative 
        efforts with industry, particularly the manufacturing sector, 
        to broaden and accelerate the high-risk research and 
        development of new manufacturing processes that optimize energy 
        efficiency and utilize diverse sources of energy.
          (8) These partnerships support critical research and 
        development capabilities at universities and other research 
        institutions while training future generations of engineers in 
        critical areas of energy systems and efficient industrial 
        process technologies for our domestic industries.

SEC. 3. INDUSTRIAL TECHNOLOGIES PROGRAM.

  (a) In General.--The Secretary of Energy (in this Act referred to as 
the ``Secretary'') shall establish a program, in cooperation with 
energy-intensive industries, trade and industry research collaborations 
representing such industries, and institutions of higher education, to 
conduct research, development, demonstration, and commercial 
application activities with respect to new industrial and commercial 
processes, technologies, and methods to--
          (1) achieve--
                  (A) substantial improvements in energy efficiency; 
                and
                  (B) environmental performance improvements such as 
                waste reduction, emissions reductions, and more 
                efficient water use; and
          (2) enhance the economic competitiveness of the United States 
        industrial sector.
  (b) Program Activities.--Research, development, demonstration, and 
commercial application activities under this section may include--
          (1) activities to support the development and use of 
        technologies and processes that improve the quality and 
        quantity of feedstocks recovered or recycled from process and 
        waste streams;
          (2) research to meet manufacturing feedstock requirements 
        with alternative resources;
          (3) research to develop and demonstrate technologies and 
        processes that utilize alternative energy sources to supply 
        heat, power, and new feedstocks for energy-intensive 
        industries;
          (4) research to achieve energy efficiency in steam, power, 
        control system, and process heat technologies, and in other 
        manufacturing processes; and
          (5) a program to fund research, development, and 
        demonstration relating to inventors' and small companies' 
        technology proposals, based on energy savings potential, 
        commercial viability, and technical merit.
  (c) Competitive Awards.--All awards under this section shall be made 
on a competitive, merit-reviewed basis.
  (d) Coordination and Nonduplication.--The Secretary shall, coordinate 
efforts under this section with other programs of the Department and 
other Federal agencies, to avoid duplication of effort.
  (e) Annual Report.--Not later than 1 year after the date of enactment 
of this Act, and once every 2 years thereafter, the Secretary shall 
submit to the Congress a report on the activities conducted pursuant to 
this Act, including--
          (1) a description of the activities used to facilitate 
        cooperation with energy-intensive industries, universities, and 
        other participants in the program; and
          (2) a description of ongoing projects and new projects 
        initiated, and the anticipated energy savings associated with 
        achievement of each project's goals.

SEC. 4. UNIVERSITY-BASED INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS.

  To strengthen the program under section 3, the Secretary shall 
provide funding to university-based industrial research and assessment 
centers, whose purpose shall be--
          (1) to identify opportunities for optimizing energy 
        efficiency and environmental performance;
          (2) to promote application of emerging concepts and 
        technologies in small and medium-sized manufacturers;
          (3) to promote the research and development for usage of 
        alternative energy sources to supply heat, power, and new 
        feedstocks for energy intensive industries;
          (4) to coordinate with appropriate State research offices, 
        and provide a clearinghouse for industrial process and energy 
        efficiency technical assistance resources; and
          (5) to coordinate with State-accredited technical training 
        centers and community colleges, while ensuring appropriate 
        services to all regions of the United States.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Secretary to carry out 
this Act $150,000,000 for each of the fiscal years 2009 through 2013.

                        II. PURPOSE OF THE BILL

    The purpose of H.R. 3775 is to authorize and support 
research, development, demonstration, and commercial 
application of new industrial processes and technologies that 
will optimize energy efficiency, environmental performance, and 
economic competitiveness of energy intensive industries; to 
enhance research and development through better coordination of 
interdepartmental research; and to expand Industrial Assessment 
Centers programs at universities to promote student training 
and adoption of energy efficient technologies and practices by 
small and medium-sized industries.

                III. BACKGROUND AND NEED FOR LEGISLATION

    An expanding economy, growing population, and rising 
standard of living create rapidly growing demands for energy, 
making energy conservation a key national goal. In the U.S. 
industry is responsible for more than one-third of all energy 
consumed, the large majority of which is consumed by 
manufacturing industries such as chemical, glass and metals 
production, mining, petroleum refining, and forest and paper 
products. These industries require very large amounts of energy 
per unit of production, making them particularly susceptible to 
high energy prices. These and other energy-intensive industries 
are ideal candidates on which to focus federal R&D efforts and 
apply new technologies, increase efficiency, raise 
productivity, reduce wastes, and trim costs.
    The Energy Efficiency and Renewable Energy's (EERE) 
Industrial Technologies Program (ITP) at the Department of 
Energy (DOE), works to improve the energy intensity of U.S. 
industry through coordinated research and development and 
dissemination of innovative energy efficiency technologies and 
practices. The ITP invests in high-risk, high-value cost-shared 
R&D projects to reduce industrial energy use and process waste 
streams, while stimulating productivity and growth. Competitive 
solicitations are the principal mechanism used by ITP to 
conduct cost-shared R&D. Solicitations reflect the priorities 
of the Program and selection of projects follows merit-based 
criteria that emphasize projected energy, environmental, and 
economic benefits. In addition, ITP makes available information 
and resources on other financial assistance and research 
opportunities and case studies from past ITP projects. The ITP 
portfolio details over 1,000 technology development projects in 
which ITP has been involved.
    The Industrial Technologies Program claims numerous 
successes. The ITP is considered one of the most effective DOE 
programs at transferring technologies, with over 170 
technologies reaching the commercial market. An estimated 
13,000 U.S. manufacturing plants have been improved through the 
ITP technology delivery effort. Nearly 5 quadrillion Btu of 
energy (equal to approximately $23 billion) of energy savings 
are attributed to the program since its inception, with 366 
trillion Btu saved in 2004 alone.
    The ITP also sponsors 26 University-Based Industrial 
Assessment Centers (IACs) that provide no-cost energy 
assessments primarily to small- and medium-sized manufacturers. 
Assessments are conducted by teams of faculty and students, and 
involve examinations of potential savings from energy 
efficiency improvements, waste minimization and pollution 
prevention, and productivity improvement. The average expected 
savings per assessment is fifty to seventy thousand dollars, 
with much larger savings possible with large operations. 
Companies are in turn encouraged to replicate accomplishments 
and share results.
    By operating through university engineering programs, the 
IACs serve as a training ground for the next generation of 
energy and industrial engineers. Roughly 240 students receive 
training through the program each year. When budgets for the 
program were higher, 38 IACs operated around the country, 
compared to the 26 in operation today.
    While the U.S. industrial sector has become much more 
energy efficient over the past 30 years, there are still ample 
opportunities to achieve efficiency gains. However, energy-
intensive industries face enormous competitive pressures that 
make it difficult to make the necessary R&D investments in 
technology development on their own. Energy-intensive 
industries tend to exhibit relatively low levels of R&D 
spending, and are often unwilling to accept the risks 
associated with undertaking complex capital-intensive 
technology development and implementation. Constantly changing 
market conditions, energy prices, and other business concerns 
affect the ability and willingness of industry to pursue energy 
efficiency opportunities. As the role of energy in industry 
changes, the ITP should have the resources to sustain and 
expand operations, adapt, and reshape its strategy where 
needed. Without a sustained commitment by the private and 
public sectors to invest in technology R&D and adopt new 
technologies, the ability to close the gap between U.S. energy 
supply and demand will be greatly limited.
    The budget for the Industrial Technologies Program has 
decreased dramatically in recent years. The Fiscal Year 2007 
budget request for Industrial Technologies was $45.6 million, 
an $11.3 million reduction from the Fiscal Year 2006 
Appropriation. By comparison, appropriated levels as recently 
as Fiscal Year 2000 were as high as $175 million. These funding 
levels reflect a dramatic shift in priorities away from 
industrial efficiency R&D. This legislation is needed to ensure 
continued gains in industrial energy efficiency and 
environmental performance through research and development.

                          IV. HEARING SUMMARY

    The Energy and Environment Subcommittee held a hearing on 
Tuesday, September 25, 2007 to hear testimony relevant to the 
Industrial Technologies Program and to receive comments on a 
discussion draft of a bill to authorize funding and provide 
guidelines for the program. The Subcommittee heard from four 
witnesses representing diverse viewpoints on the program:
     Mr. Malcolm Verdict, C.E.M., Associate Director of 
the Energy Systems Laboratory within the Texas Engineering 
Experiment Station (TEES) at Texas A&M University.
     Mr. Fred Moore. Global Director of Manufacturing 
and Technology for Dow Chemical's Energy Business, and Chairman 
of the Energy Efficiency Task Force of the National Association 
of Manufacturers.
     Mr. Lawrence Kavanagh, Vice President of 
Manufacturing and Technology for the American Iron and Steel 
Institute (AISI).
     Mr. Paul Cicio, President at Industrial Energy 
Consumers of America.
    The hearing examined the successes and limitations of the 
Industrial Technologies Program, and how the program can be 
improved to increase industrial energy efficiency and 
environmental performance in the U.S. industrial sector. It 
also looked at which areas of research and development should 
be enhanced and explored by the ITP and the Industrial 
Assessment Centers, and what cost-effective opportunities does 
a further enhancement of industrial efficiency program offer. 
The hearing provided background for the legislation.
    The subcommittee heard testimony from four witnesses 
offering perspectives from the U.S. industrial sector, industry 
trade associations, and university-based energy auditing 
centers. The witnesses all commented on the need and timeliness 
of this legislation. There was unanimous agreement among all 
the witnesses that the program should be funded at higher 
levels than it has received in recent years, and that increased 
funding was needed to achieve further gains in energy 
efficiency and environmental performance of the industrial 
sector. The witnesses also indicated their support for the 
program to engage in projects that would help industry to 
reduce its greenhouse gas emissions.
    On October 9, 2007, Representative Nick Lampson, Chairman 
of the Energy and Environment Subcommittee introduced H.R. 
3775, The Industrial Energy Efficiency Research and Development 
Act of 2007.

                    V. SUMMARY OF COMMITTEE ACTIONS

    The Subcommittee on Energy and Environment met to consider 
H.R. 3775 on October 10, 2007, with no amendments to the bill. 
Mr. McNerney moved that the Subcommittee favorably report the 
bill, H.R. 3775, to the Full Committee on Science and 
Technology. The motion was agreed to by a voice vote.
    The Committee on Science and Technology met on October 16, 
2007, to consider H.R. 3775 as reported by the Subcommittee and 
to consider the following amendment:
    The Manager's amendment offered by Representative Lampson 
and Representative Inglis:
    The manager's amendment to the bill made minor corrections 
and additions to the bill. The amendment adds a finding to 
further elaborate on the past successes of the program in 
working with energy intensive industries. The amendment adds to 
the list of groups the program should coordinate with. The 
amendment strikes the term, industry trade associations, and 
changes this to trade and industry research collaborations. The 
amendment also strikes subsection (c) of section 3 on financial 
assistance. Finally, the amendment adds a biannual reporting 
requirement. The amendment was adopted by voice vote.
    The Committee favorably reported the bill, H.R. 3775, as 
amended, by a voice vote.

              VI. SUMMARY OF MAJOR PROVISIONS AS REPORTED

    H.R. 3775 authorizes $150 million for each fiscal year 
2009-2013 to the Department of Energy to support research, 
development, demonstration, and commercial application of new 
industrial processes and technologies to optimize energy 
efficiency and environmental performance of the U.S. industrial 
sector, and expand the Industrial Assessment Centers program at 
universities. The bill encourages research, development and 
demonstration to improve the quality, quantity, and alternative 
resources of industrial feedstocks; using new alternative 
energy technologies; and achieving greater energy efficiency in 
steam, power, control system, and process heat technologies in 
energy-intensive industries. H.R. 3775 also allows for 
competitive awards to individuals and small businesses for 
novel energy savings concepts and inventions. H.R. 3775 
enhances research and development efforts through cooperation 
with energy intensive industries, industry trade associations, 
and institutions of higher education and through better 
coordination of interdepartmental research as well as with 
other Federal agencies.

       VII. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    ``The Industrial Energy Efficiency Research and Development 
Act of 2007''

Sec. 2. Findings

    The U.S. Industrial sector accounts for more energy use 
(32%) than the residential, commercial, or transportation 
sectors. Industries have almost reached optimal energy 
efficiencies and new innovations and technologies' research, 
development, and demonstration are necessary to increase energy 
efficiency and diversify energy and feedstock sources.

SEC. 3. Industrial technologies program

    Establishes a program within the Department of Energy to 
work with energy-intensive industries, industry trade 
associations, and institutions of higher education to conduct 
cost-shared research, development, demonstration, and 
commercial application activities for new innovations and 
technologies to enhance industrial efficiency and economic 
competitiveness of U.S. industrial sector.
    Defines the activities of the program to include: research 
to improve the quality and quantity of feedstocks recovered 
from waste streams; to develop alternative resources for use as 
industrial feedstocks; developing alternative energy sources to 
supply heat and power for energy-intensive industries; and 
achieve overall energy efficiency in manufacturing processes.
    Requires the Secretary to submit a report to Congress one 
year after enactment and every two years thereafter on the 
activities of the program including a description of the 
cooperative activities with non-federal partners and a 
description of projects undertaken by the program.

SEC. 4. University-based industrial research and assessment centers

    Requires the Secretary to fund University-based Industrial 
Research and Assessment Centers to aid small and medium sized 
manufacturers by identifying opportunities to optimize their 
energy efficiency and improve environmental performance through 
advanced technologies, to serve as a resource for technical 
data, and to train engineering and research students to conduct 
energy assessments.

Sec. 5. Authorization of appropriations

    $150 million is authorized for each fiscal year 2009-2013.

                         VIII. COMMITTEE VIEWS

    It is the view of the Committee that improving the 
efficiency of the energy-intensive industrial sector is vital 
to maintaining our country's economic infrastructure and our 
security. H.R. 3775 seeks to support and encourage research and 
development of new industrial processes and technologies that 
industry can adopt to improve their energy efficiency, 
environmental performance, including lowering greenhouse gas 
emissions, and increase U.S. competitiveness.
    The Committee believes the Industrial Technology Program 
(ITP) should continue to work with the traditional material 
manufacturing industries that have been the focus of this 
program since its inception. Industries such as primary metals 
(including steel and aluminum), chemicals, metal casting, 
ceramics (including glass and cement), forest products, 
petroleum refining, and mining all require significant energy 
input for their operations. Through their partnership with the 
ITP, many of these industries have become more energy 
efficient. However, they continue to utilize significant energy 
resources and as energy prices increase or competition for 
traditional energy sources increases, further improvements will 
be required for these industries to remain competitive in the 
U.S. While incremental efficiency gains are still likely in 
many areas, dramatic improvements may only be possible through 
wholesale changes in process technologies and feedstocks.
    The Committee believes the ITP's scope should include 
working with these industries to develop new and cost effective 
feedstocks and processes that will not only save energy, but 
will enable these industries to transition to the use of 
nontraditional inputs and to improve their overall 
environmental performance. The Committee believes that the 
program should work with industry to develop processes and 
technologies that will enable greater re-use of processing 
resources and waste reduction. This not only delivers benefits 
to the communities where these industries operate by reducing 
waste and emissions, it also delivers financial benefits by 
reducing costs for waste disposal and input purchases.
    The Committee believes there are significant opportunities 
through the increased use of renewable energy alternatives to 
enhance sustainability and lower emissions when supplying heat, 
power and feedstock. For example, energy consumption for 
industrial steam users can be reduced by developing an expanded 
portfolio of ultra-efficient steam generation systems as well 
as, improving the efficiency of industrial heating systems by 
developing process heating and combustion technologies and 
improved energy recovery technologies. Furthermore, research, 
development, and demonstration of advanced combined heat and 
power technologies (CHP) can lead to significant reductions in 
carbon emissions, cost of electricity, and investments in 
future power generation, transmission, and delivery upgrades.
    The Committee recognizes the Department has numerous 
efforts underway through multiple programs, outside of the 
Industrial Technologies Program, to develop new materials for 
use as feedstocks and fuels as well as to develop new energy 
sources. The Committee encourages the Department to facilitate 
the exchange of information and experience of these programs 
with the ITP. ITP's long history of working in partnership with 
industry and its success in getting broader adoption of new 
technologies make this program a good choice for facilitating 
technology transfer from the lab into general use.
    Rising costs for traditional fossil energy sources 
represents a significant challenge and is providing a strong 
incentive for energy intensive industries to examine the 
potential of alternative energy supplies. The Committee 
believes the ITP is well-suited to work with these industries 
to assist them in making the transition to the use of 
alternative energy resources to lead to increased efficiency 
and cost-effectiveness. Better information exchange among DOE 
programs would facilitate this outcome.
    The Committee recognizes that ideas on technological 
advances can be generated from various sources. For individuals 
and small businesses with ideas and inventions, developing an 
energy saving invention and commercializing it in a market with 
entrenched technologies and processes can be difficult. The 
Committee believes DOE should resume its support for these 
small-scale activities as well and has authorized an Inventions 
and Innovation Program to offer technical and financial support 
to inventors and small businesses with promising energy-saving 
concepts and technologies. At present, the Department is not 
supporting this type of program.
    The ITP program historically partners with industries using 
a dollar for dollar match cost-sharing arrangement in 
accordance with section 988 of the Energy Policy Act of 2005 
(42 U.S.C. 16352). The Committee believes this is a great 
strength of this program and demonstrates the commitment and 
confidence that industry partners have to this program. The 
Committee also believes that awards to any entity should be 
made on a competitive, merit-reviewed basis.
    The Committee believes the Industrial Assessment Centers 
(IACs) based at colleges and universities make an important 
contribution to the ITP. The Centers provide eligible small- 
and medium-sized manufacturers with comprehensive industrial 
assessments, performed at no cost to the manufacturer by 
students and faculty. The Department has developed criteria for 
eligibility used by the Centers. Small- and medium-sized 
manufacturers usually cannot afford the services provided 
through the Centers and often do not have the ability to 
participate in a collaborative R&D effort to develop new 
technologies. And, while it is often the case that new 
technologies and practices developed in larger industry may 
ultimately find its way to smaller manufacturers, the IACs 
actually provide a conduit for novel technologies and practices 
to flow the other way, from smaller firms towards deployment in 
larger-scale industries. The Committee believes these 
activities not only provide benefit to small- and medium-size 
manufacturers, but provide important hands-on training for 
students who will eventually work in the industrial sector and 
carry their knowledge and experience with them. Efforts such as 
these that improve the overall energy and environmental 
performance of our economy benefit us all and can help to 
maintain the economic viability of our manufacturing base.
    The Committee recognizes the primary activity of the 
Centers has been providing assessments, information, and 
recommendations of market-ready technologies to small- and 
medium-sized manufacturers. However, the Committee believes 
with some additional resources the Centers could engage in more 
research utilizing the research and engineering capabilities of 
the participating universities.
    The number and location of the IACs has varied widely 
depending on program funding levels and university involvement. 
Currently there are 26 centers, but in the past there were as 
many as 38. The Committee has not specified the number of 
Centers the program should support. However, the Committee 
believes the work of these Centers is vital to increase the 
distribution of energy-saving processes and technologies 
throughout the country. Therefore, the bill directs the 
Department to ensure the services provided by the Centers are 
available in all regions of the country. The Committee also 
supports the participation of community colleges and state-
accredited training centers in the IACs. These organizations 
play a vital role in education and training and have a student 
population that would benefit from the hands-on experience 
conducted through the IAC program.
    The Committee also believes an important function of the 
Centers is to work with State and regional offices to gather 
and serve as a clearinghouse for information on the programs 
and technical assistance available to help businesses improve 
their energy efficiency and environmental performance. The 
Committee also believes the outreach efforts of the Centers 
would be enhanced by collecting and disseminating information 
about their successes in working with small- and medium-sized 
companies and the energy savings the companies achieved by 
implementing new processes and technologies.
    The Committee is concerned about the decline of financial 
support for the ITP over the past few years. The need for 
better environmental performance, economic competitiveness, and 
greater energy efficiency gains is growing and the ITP should 
be funded at a higher level to promote a more aggressive pace 
of achievement for these goals.

                           IX. COST ESTIMATE

    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 and Technology prior to the filing of 
this report and is included in Section X of this report 
pursuant to House Rule XIII, clause 3(c)(3).
    H.R. 3775 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
3775 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section X of this report.

              X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                                  October 19, 2007.
Hon. Bart Gordon,
Chairman, Committee on Science and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3775, the 
Industrial Energy Efficiency Research and Development Act of 
2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Leigh Angres.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 3775--Industrial Energy Efficiency Research and Development Act of 
        2007

    Summary: H.R. 3775 would authorize the appropriation of 
$150 million a year over the 2009-2013 period to expand the 
Department of Energy's (DOE's) industrial technologies program 
to promote energy efficiency in the industrial sector. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 3775 would cost $68 million in 2009 and $489 
million over the 2009-2012 period. Spending of about $260 
million would occur after 2012. Enacting H.R. 3775 would not 
affect direct spending or revenues.
    H.R. 3775 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3775 is shown in the following table. 
The costs of this legislation fall within budget function 250 
(general science, space, and technology).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATIONAuthorization Level.............       0     150     150     150     150
Estimated Outlays...............       0      68     128     143    150
------------------------------------------------------------------------
Note: A full year appropriation for the Department of Energy has not yet
  been enacted. The 2007 appropriation for the Department of Energy's
  industrial technologies program was approximately $57 million. Under
  the bill, an additional $150 million would be authorized in 2013.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3775 will be enacted during fiscal year 2008 and that the 
entire amounts authorized will be appropriated for each fiscal 
year.
    H.R. 3775 would authorize the appropriation of $150 million 
a year over the 2009-2013 period to expand DOE's industrial 
technologies program, which promotes energy efficiency in 
manufacturing processes. The 2007 appropriation for these 
activities was approximately $57 million. Under the bill, the 
Secretary of Energy would award grants to promote partnerships 
among energy-intensive industries, trade and industry research 
collaborations, and institutes of higher education to develop 
technologies that utilize alternative energy sources to supply 
heat, power, and new feedstocks (raw materials) for energy-
intensive industries.
    The bill also would increase funding for university-based 
industrial research and assessment centers. Currently, these 
centers provide no-cost energy assessments to small-and medium-
sized manufacturers. H.R. 3775 would require the Secretary to 
submit a report to the Congress not later than one year after 
the date of enactment, and once every two years thereafter, 
detailing ongoing projects and the anticipated energy savings 
that result from use of new technologies. Based on the 
historical spending patterns of DOE research and development 
programs, CBO estimates that implementing H.R. 3775 would cost 
$68 million in 2009 and $489 million over the 2009-2012 period.
    Intergovernmental and private-sector impact: H.R. 3775 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would authorize increased funding for 
a Department of Energy program to research and develop new 
technology for energy efficiency and waste reduction. This 
program would benefit institutions of higher education, and any 
costs they might incur, including matching funds, would be 
incurred voluntarily.
    Estimate prepared by: Federal Costs: Leigh Angres; Impact 
on State, Local, and Tribal Governments: Neil Hood; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                  XI. COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 3775 contains no unfunded mandates.

         XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    The oversight findings and recommendations of the Committee 
on Science and Technology are reflected in the body of this 
report.

      XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause (3)(c) of House Rule XIII, the goal of 
H.R. 3775 is to support research and development of new 
industrial processes and technologies that optimize energy 
efficiency and environmental performance, utilize diverse 
sources of energy, and increase economic competitiveness.

                XIV. CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 3775.

                XV. FEDERAL ADVISORY COMMITTEE STATEMENT

    H.R. 3775 does not establish nor authorize the 
establishment of any advisory committee.

                 XVI. CONGRESSIONAL ACCOUNTABILITY ACT

    The Committee finds that H.R. 3775 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).

                      XVII. EARMARK IDENTIFICATION

    H.R. 3775 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of Rule XXI.

     XVIII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    This bill is not intended to preempt any state, local, or 
tribal law.

       XIX. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 3775, as reported, makes no changes in existing law.

                     XX. COMMITTEE RECOMMENDATIONS

    On October 16, 2007, the Committee on Science and 
Technology favorably reported H.R. 3775, as amended, by a voice 
vote and recommended its passage by the House of 
Representatives.



   XXI. PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY AND 
ENVIRONMENT ON H.R. 3775, THE INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND 
                        DEVELOPMENT ACT OF 2007

                              ----------                              


                      WEDNESDAY, OCTOBER 10, 2007

                  House of Representatives,
            Subcommittee on Energy and Environment,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Subcommittee met, pursuant to call, at 2:06 p.m., in 
Room 2318 of the Rayburn House Office Building, Hon. Nick 
Lampson [Chairman of the Subcommittee] presiding.
    Chairman Lampson. Good afternoon. This Committee on Energy 
and Environment will come to order. Pursuant to notice, the 
Subcommittee on Energy and Environment meets to consider the 
following measures: H.R. 3776, the Energy Storage Technology 
Advancement Act of 2007; H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007; and H.R. 1834, 
the National Ocean Exploration Program Act. We will now proceed 
with the markup, beginning with opening statements, and I will 
begin.
    Today the Subcommittee will consider three bills.
    The first is the Energy Storage Technology Advancement Act, 
introduced yesterday by Chairman Gordon. As we learned in the 
hearing last week, an aggressive research program to accelerate 
the development of batteries and other energy-storing 
technologies is essential to achieving greater energy 
efficiency and emission reduction in the utility and 
transportation sectors. Chairman Gordon's bill, which 
incorporates many features of an energy bill introduced earlier 
in the Congress by Ranking Member Hall, will ensure that we 
move these import technologies forwards and support a vigorous 
domestic industrial capability in this areas.
    The second bill is the Industrial Energy Efficiency 
Research and Development Act. I introduced this legislation 
yesterday after circulating a discussion draft of the bill at 
the end of September. If we want to maintain a competitive, 
domestic industrial economy, we must find ways to enable 
energy-intensive industries to become more energy efficient and 
to diversify the fuel and raw materials they use to manufacture 
their products. Competition for energy and material is 
increasing and driving up prices for these inputs. The 
Industrial Technology Program at the Department of Energy has 
been working in partnership with industries across the county 
to achieve these important goals, but we still must do more.
    And finally, we will consider H.R. 1834, introduced by our 
colleague on the Natural Resources Committee, Representative 
Saxton. The National Ocean Exploration and National Undersea 
Research Program Act will expand our knowledge of the oceans 
and provide basic information about the vast resources of the 
seas. The ocean and coastal areas of our nation support 
significant economic activity in a wide variety of area, but in 
many respects, the oceans remain a mystery with many areas 
unexplored. Representative Saxton's legislation provides the 
National Oceanic and Atmospheric Administration with the 
authorities and direction to support a vigorous ocean-
exploration program. We will continue to work with our 
colleagues on the Natural Resources Committee to move this 
legislation forward.
    I urge the Members of the Subcommittee to support all three 
of these bills, and I look forward to continue working with all 
of you as these will go forward.
    [The prepared statement of Chairman Lampson follows:]
              Prepared Statement of Chairman Nick Lampson
    Good afternoon.
    Today the Subcommittee will consider three bills. The first is the 
Energy Storage Technology Advancement Act introduced yesterday by 
Chairman Gordon. As we learned in the hearing last week, an aggressive 
research program to accelerate the development of batteries and other 
energy storing technologies is essential to achieving greater energy 
efficiency and emission reductions in the utility and transportation 
sectors.
    Chairman Gordon's bill, which incorporates many features of an 
energy bill introduced earlier in this Congress by Ranking Member Hall, 
will ensure that we move these important technologies forward and 
support a vigorous domestic industrial capability in this area.
    The second bill is the Industrial Energy Efficiency Research and 
Development Act. I introduced this legislation yesterday after 
circulating a discussion draft of the bill at the end of September.
    If we want to maintain a competitive, domestic industrial economy 
we must find ways to enable energy-intensive industries to become more 
energy efficient and to diversify the fuel and raw materials they use 
to manufacture their products. Competition for energy and materials is 
increasing and driving up prices for these inputs. The Industrial 
Technology Program at the Department of Energy has been working in 
partnership with industries across the country to achieve these 
important goals, but we must do more.
    Finally, we will consider H.R. 1834 introduced by our Colleague on 
the Natural Resources Committee, Rep. Saxton. The National Ocean 
Exploration and National Undersea Research Program Act will expand our 
knowledge of the oceans and provide basic information about the vast 
resources of the seas.
    The ocean and coastal areas of our nation support significant 
economic activity in a wide variety of areas. But in many respects, the 
oceans remain a mystery with many areas unexplored. Rep. Saxton's 
legislation provides the National Oceanic and Atmospheric 
Administration with the authorities and direction to support a vigorous 
ocean exploration program. We will continue to work with our colleagues 
on the Natural Resources Committee to move this legislation forward.
    I urge the Members of the Subcommittee to support all three of 
these bills, and I look forward to continue working with all of you as 
these bills go forward.

    Chairman Lampson. And I recognize Mr. Inglis to present his 
opening remarks.
    Mr. Inglis. Thank you, Mr. Chairman. I look forward to this 
markup, and today we will mark up two bills that address two 
vital needs in pursuit of our energy security: energy 
efficiency and energy storage.
    The Department of Energy's Industrial Technologies Program 
has a successful track record of helping U.S. manufactures 
translate research and development into efficient, cost-saving 
technologies. By reauthorizing this program, the Industrial 
Energy Efficiency Research and Development Act, H.R. 3775, will 
support our nation's industries in achieving energy efficiency 
while remaining economically competitive. It is very important 
that we direct this program to prioritize its efficiency 
efforts, targeting industry sectors, not individual businesses, 
where we can attain the best emissions reductions for our buck.
    While energy efficiency reduces our total consumption of 
foreign oil and gas, energy-storage progress will encourage 
development of clean, renewable energy sources. H.R. 3776, the 
Energy Storage Technology Advancement Act, can help promote 
consistent and stable energy supply from renewable sources. 
That is a big hurdle, but it is one we can't clear soon enough.
    Finally, we shall be marking up the bill H.R. 1834, the 
National Ocean Exploration Program Act. Marine scientists tell 
us that we haven't come close to tapping the resources 
available to us in and under our oceans. I hope that the bill 
we markup today steers research dollars to those fact-finding 
projects so that we might, one day, reap the benefits of our 
hidden oceanic resources.
    Thank you again, Mr. Chairman, and I look forward to 
working with you to advance this legislation.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you for holding this markup, Mr. Chairman.
    Today we'll mark up two bills that address two vital needs in our 
pursuit of energy security: energy efficiency and energy storage.
    The Department of Energy's Industrial Technologies Program (ITP) 
has a successful track record of helping U.S. manufacturers translate 
research and development into efficient, cost-saving technologies. By 
reauthorizing this program, the Industrial Energy Efficiency Research 
and Development Act (H.R. 3775) will support our nation's industries in 
achieving energy efficiency while remaining economically competitive. 
It is very important that we direct this program to prioritize its 
efficiency efforts, targeting industry sectors (not individual 
businesses) where we can attain the best emissions reductions for our 
buck
    While energy efficiency reduces our total consumption of foreign 
oil and gas, energy storage progress will encourage development of 
clean, renewable energy sources. H.R. 3776, the Energy Storage 
Technology Advancement Act can help promote consistent and stable 
energy supply from renewable sources. That's a big hurdle, but it's one 
we can't clear soon enough.
    Finally, we'll be marking up the H.R. 1834, the National Ocean 
Exploration Program Act. Marine scientists tell us that we haven't come 
close to tapping the resources available to us in and under our oceans. 
I hope that the bill we markup today steers research dollars to those 
``fact-finding'' projects, so that humanity might one day reap the 
benefits of our hidden oceanic resources.
    Thank you again, Mr. Chairman, and I look forward to working with 
you to advance this legislation.

    Chairman Lampson. Thank you, Mr. Inglis. Without objection, 
Members may place statements in the record at this point.
    We will now consider H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007.
    I yield myself five minutes to describe this bill.
    This bill authorizes and expands the Department of Energy's 
Industrial Technologies Program through better coordination of 
the interdepartmental research, enhancing the Industrial 
Assessment Center's Program at universities and supporting more 
research and development of new innovations and technologies as 
they relate to efficiency improvement of the most energy-
intensive manufacturing process.
    On September 25, we heard expert energy-industry witnesses 
testify as to the need for and the timeliness of this 
legislation. They specifically encouraged research, devolvement 
and demonstration to improve the quality, quantity, and 
alternative resources of industrial feed stocks.
    Using new, alternative energy technologies and achieving 
greater energy efficiency in our nation's most energy-intensive 
industries, the Industrial Technologies Program is already 
widely recognized for producing a number of high-quality, 
market-ready technological advances that have saved industry 
billions in energy costs, and consequently preserved American 
jobs. It also serves as a training ground for the next 
generation of energy and industrial engineers, training over 
240 students a years.
    Unfortunately, we have seen the budget for this program 
drop rapidly in the last few years, down almost 70 percent from 
2001. This legislation is needed to continue supporting the 
successes of this program, while shifting the funding levels to 
reflect our priorities to ensure energy efficiency and 
environment performance through industrial efficiency research. 
These efforts not only improve the bottom line of a wide 
variety industries, but enhance the quality of life for 
American workers, families, and the communities they serve.
    I ask my colleagues to support this important legislation, 
and I now recognize Mr. Inglis to present any remarks on the 
bill.
    Mr. Inglis. Only this, Mr. Chairman, a question for the 
record: it appears that the version in front of us today has a 
bill number added to it, which was not in the discussion draft 
that was circulated. I just want to make sure that the version 
that we are using is identical to the introduced version in 
order to prevent any confusion moving forward. Is the October 
4, 2007, 8:22 p.m., version identical to the version that was 
introduced?
    Chairman Lampson. It is the same.
    Mr. Inglis. Thank you, Mr. Chairman.
    Chairman Lampson. Thank you, Mr. Inglis. Does anyone else 
wish to be recognized on this bill? Anyone else wish to be 
recognized on the bill? Seeing none, I ask unanimous consent 
that the bill is considered as read and open to amendment at 
any point, and that the Members proceed with the amendments in 
the order of the roster. Without objection, it is so ordered.
    There are no amendments, and at this point, we do not have 
a quorum, I don't believe to make our vote. Can we roll this 
vote and go to the next bill then?
    Mr. Bartlett. Can we, by unanimous consent, waive the 
quorum rule?
    Chairman Lampson. If there is no objection, we may go 
forward, yes.
    Mr. Bartlett. I ask unanimous consent we waive the quorum 
rule and go forward.
    Chairman Lampson. Is there objection? Seeing none, we will 
proceed. Turning to H.R. 3775, I recognize Mr. McNerney to 
offer a motion.
    Mr. McNerney. Mr. Chairman, I move that the Committee 
favorably report H.R. 3775 to the Full Committee. Furthermore, 
I move that the staff be instructed to prepare the Subcommittee 
legislative report and make necessary technical and conforming 
changes to the bill, in accordance with the recommendations of 
the Subcommittee.
    Chairman Lampson. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye; those opposed, no. The ayes have it, and the 
bill is favorably reported.
    Without objection, the motion to reconsider is laid upon 
the table. The Subcommittee Members may submit additional or 
Minority views on the measure.
    I want to thank the Members for their attendance. This 
concludes our Subcommittee markup. We are adjourned. Thank you.
    [Whereupon, at 2:25 p.m., the Subcommittee was adjourned.]
                               Appendix:

                              ----------                              


            H.R. 3775, Section-by-Section: Discussion Draft





                  Section-by-Section: Discussion Draft

   Industrial Energy Efficiency Research and Development Act of 2007

Section 1. Short Title

    ``The Industrial Energy Efficiency Research and Development Act of 
2007''

Section 2. Findings

    The U.S. Industrial sector accounts for more energy use (32 
percent) than the residential, commercial, or transportation sectors. 
Industries have almost reached optimal energy efficiencies and new 
innovations and technologies' research, development, and demonstration 
are necessary to increase energy efficiency and diversify energy and 
feedstock sources.

Section 3. Industrial Technologies Program

    Establishes a program within the Department of Energy to work with 
energy-intensive industries, industry trade associations, and 
institutions of higher education to conduct cost-shared research, 
development, demonstration, and commercial application activities for 
new innovations and technologies to enhance industrial efficiency and 
economic competitiveness of U.S. industrial sector.
    Defines the activities of the program to include: research to 
improve the quality and quantity of feedstocks recovered from waste 
streams; to develop alternative resources for use as industrial 
feedstocks; developing alternative energy sources to supply heat and 
power for energy-intensive industries; and achieve overall energy 
efficiency in manufacturing processes.

Section 4. University-Based Industrial Research and Assessment Centers

    Requires the Secretary to fund University-based Industrial Research 
and Assessment Centers to aid small-and medium sized manufacturers by 
identifying opportunities to optimize their energy efficiency and 
improve environmental performance through advanced technologies, to 
serve as a resource for technical data, and to train engineering and 
research students to conduct energy assessments.

Section 5. Authorization of Appropriations

    $150 million is authorized for each fiscal year 2009-2013.



   XXII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 3775, THE 
   INDUSTRIAL ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT ACT OF 2007

                              ----------                              


                       TUESDAY, OCTOBER 16, 2007

                  House of Representatives,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:07 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Bart Gordon 
[Chairman of the Committee] presiding.
    Chairman Gordon. Good morning, everyone. Pursuant to notice 
the Committee on Science and Technology meets to consider the 
following measures; H.R. 3776, the Energy Storage Technology 
Advancement Act of 2007, and H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007.
    We will put the Committee on notice. We originally also 
were going to deal with a bill from Mr. Sexton today, but 
apparently it is not ready, and we will be doing it next week. 
So I assume everybody is working, and we will get that ready to 
go.
    We will now proceed with the markup, and I will begin with 
a brief statement. Today the Science and Technology Committee 
will consider two bills. The first is the Energy Storage 
Technology Advancement Act, H.R. 3776, and I would like to 
thank my friend, Ranking Member Hall, for his interest in this 
important issue and the work he and his staff have put into the 
bill.
    H.R. 3776 includes provisions from a bill Mr. Hall 
introduced earlier this year, and I am glad we could 
incorporate that into it.
    I will offer a Manager's amendment to H.R. 3776, which 
makes some technical changes and other improvements to the 
bill, and I would like to thank Mr. Hall, Ms. Biggert, Mr. 
Inglis, and their staffs for working with us to develop the 
amendment.
    The second bill we will markup today is the Industrial 
Energy Efficiency Research and Development Act, H.R. 3775.
    H.R. 3775 was introduced by Energy and Environment 
Subcommittee Chairman Nick Lampson. I understand Chairman 
Lampson and Ranking Member Inglis have worked together on a 
Manager's amendment that will make several changes to the 
introduced legislation.
    And I am glad to see the Committee tackle such and 
important and under-served area as this, and I know Mr. Lampson 
has worked hard with the industry, universities, DOE, and the 
minority to make this a good bill.
    I now recognize Mr. Hall to present his opening remarks.
    [The prepared statement of Chairman Gordon follows:]
               Prepared Statement of Chairman Bart Gordon
    Today, the Science and Technology Committee will consider two 
bills.
    The first is the Energy Storage Technology Advancement Act, H.R. 
3776 which I introduced last week.
    I would like to thank my friend from Texas, Ranking Member Hall, 
for his interest in this important issue and the work he and his staff 
put into this bill. H.R. 3776 includes provisions from a bill Mr. Hall 
introduced earlier this year, and I am glad we could incorporate them.
    Advancing the field of energy storage technologies brings with it 
several environmental, economic and security-related benefits, and it 
is critical that the U.S. build up and maintain a competitive 
industrial capability in this sector.
    Establishing an aggressive research program to is vital to 
advancing the development and deployment of energy storage technologies 
for use in electric drive vehicles and stationary applications that 
improve operation of our electricity delivery system.
    I will offer a Manager's amendment to H.R. 3776 which makes some 
technical changes and other improvements to the bill. I would like to 
thank Mr. Hall, Mrs. Biggert, Mr. Inglis and their staffs for working 
with us to develop the amendment.
    The second bill we will markup today is the Industrial Energy 
Efficiency Research and Development Act, H.R. 3775.
    H.R. 3775 was introduced by Energy and Environment Subcommittee 
Chairman Nick Lampson. I understand Chairman Lampson and Ranking Member 
Inglis have worked together on a Manager's amendment that will make 
several changes to the introduced legislation.
    I am glad to see the Committee tackle such an important and under-
served area as this, and I know Mr. Lampson has worked hard with 
industry, universities, DOE, and the Minority to make this a good bill.

    Mr. Hall. Thank you, Mr. Chairman, and I would like to add 
my support to the two bills that we are marking up today. Both 
of them work towards efficiently using our country's energy 
resources.
    The Industrial Energy Efficiency Research and Development 
Act will reinforce the good work the Department of Energy is 
currently doing in the Industrial Technologies Program to help 
American companies lower their use of energy in the production 
of their products and in the running of their plants and their 
businesses, which is very important.
    The Energy Storage Technology Advancement Act will also 
help our country use energy more efficiently in that it 
establishes a program at the Department of Energy to develop 
energy storage devices for stationary and vehicular 
applications.
    This will allow our country to utilize renewable energy 
sources to the maximum extent possible and allow for 
traditional generation to become even more efficient as energy 
storage devices will reduce the need for inefficient and 
expensive power plants to be ramped up during times of high 
energy demand.
    The bill, Mr. Chairman, will also help pave the way toward 
the development of plug-in hybrid vehicles by furthering 
research on the storage system necessary to make the vehicles a 
viable, widespread transportation option.
    I introduced similar energy storage legislation earlier 
this year. Mr. Chairman, I really want to thank you for 
including a lot of my language in the version that is before us 
today.
    And I yield back my time.
    [The prepared statement of Mr. Hall follows:]
           Prepared Statement of Representative Ralph M. Hall
    Mr. Chairman, I would like to add my support to the two bills we 
are marking up today. Both of them work towards efficiently using our 
country's energy resources. The Industrial Energy Efficiency Research 
and Development Act will reinforce the good work the Department of 
Energy is currently doing in the Industrial Technologies Program to 
help American companies lower their use of energy in the production of 
their products and in the running of their plants and businesses.
    The Energy Storage Technology Advancement Act will also help our 
country use energy more efficiently in that it establishes a program at 
the Department of Energy to develop energy storage devices for 
stationary and vehicular applications. This will allow our country to 
utilize renewable energy sources to the maximum extent possible and 
allow for traditional generation to become even more efficient as 
energy storage devices will reduce the need for inefficient and 
expensive power plants to be ramped up during times of high energy 
demand. The bill will also help pave the way toward the development of 
plug-in hybrid vehicles by furthering research on the storage systems 
necessary to make the vehicles a viable, widespread transportation 
option.
    I introduced similar energy storage legislation earlier this year, 
and I would like to thank Chairman Gordon for including much of my 
language in this version before us today.
    I yield back the balance of my time.

    Chairman Gordon. Thank you, Mr. Hall, and now without 
objection Members may place statements in the record at this 
point.
    We will now consider H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007.
    I yield to the Chairman of Energy and Environmental 
Subcommittee, Mr. Lampson, five minutes to describe his bill.
    Mr. Lampson. Thank you, Mr. Chairman, for bringing this 
bill up today for a Full Committee markup.
    This bill authorizes and expands the Department of Energy's 
Industrial Technologies Program through better coordination of 
interdepartmental research, enhancing the Industrial Assessment 
Centers Program at universities, and supporting more research 
and development of new innovations and technologies as they 
relate to efficiency and environmental improvements of most 
energy-intensive manufacturing processes.
    On September 25 we heard expert energy industry witnesses 
testify as to the need for and timeliness of this legislation. 
I introduced the bill on the 9th of October, and last week we 
marked up, marked the bill up in Subcommittee.
    The Industrial Technologies Program is already widely 
recognized for producing a number of high-quality, market-ready 
technological advances that have saved industry literally 
billions in energy costs. Consequently, making these industries 
more competitive and preserving American jobs.
    Unfortunately, we have seen the budget for this program 
drop rapidly in the last few years. This legislation is needed 
to continue supporting the successes of this program while 
shifting the funding levels to reflect our priorities to ensure 
energy efficiency, environmental performance, and 
competitiveness through industrial efficiency research and 
development.
    I ask my colleagues to support this important legislation.
    I yield back my time.
    [The prepared statement of Mr. Lampson follows:]
           Prepared Statement of Representative Nick Lampson
    Thank you, Chairman, for bringing this bill up today for Full 
Committee markup.
    This bill authorizes and expands the Department of Energy's 
Industrial Technologies Program through better coordination of 
interdepartmental research; enhancing the Industrial Assessment Centers 
program at universities; and supporting more research and development 
of new innovations and technologies as they relate to efficiency and 
environmental improvements of the most energy-intensive manufacturing 
processes.
    On September 25 we heard expert energy industry witnesses testify 
as to the need for and timeliness of this legislation. I introduced 
this bill on the 9th of October, and last week we marked this bill up 
in Subcommittee.
    The Industrial Technologies Program is already widely recognized 
for producing a number of high quality market-ready technological 
advances that have saved industry billions in energy costs, 
consequently making these industries more competitive and preserving 
American jobs. Unfortunately, we have seen the budget for this program 
drop rapidly in the last few years.
    This legislation is needed to continue supporting the successes of 
this program while shifting the funding levels to reflect our 
priorities to ensure energy efficiency, environmental performance, and 
competitiveness through industrial efficiency research and development.
    I ask my colleagues to support this important legislation.

    Chairman Gordon. Mr. Hall is recognized for any remarks on 
the bill.
    Mr. Hall. Mr. Chairman, I am in full agreement with it. I 
yield back my time.
    Chairman Gordon. Does anyone else wish to be recognized?
    I ask unanimous consent the resolution is considered as 
read and open to amendment at any point and that Members 
proceed with the amendments in the order of the roster.
    Without objection, so ordered.
    The first amendment on the roster is a Manager's amendment 
offered by Mr. Lampson. Are you ready to proceed?
    Mr. Lampson. Yes, I am, Mr. Chairman. I have an amendment 
at the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 3775 offered by Mr. Lampson of 
Texas and Mr. Inglis of South Carolina.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize the gentleman from Texas for five minutes to 
explain his amendment.
    Mr. Lampson. Mr. Chairman, this amendment incorporates 
suggestions by witnesses at our hearing and outside 
stakeholders who provided comments on the bill, and I want to 
thank Mr. Inglis for working with us on this amendment that 
makes some minor corrections and additions to the bill.
    We have added an additional finding to further highlight 
the past successes of the program and working with certain 
energy-intensive industries.
    In addition, this amendment strikes Sub-Section C of 
Section 3 to eliminate duplicative statements of authority 
already given to the Secretary of Energy.
    And finally, the amendment adds a biannual report to be 
submitted to Congress to provide added accountability and 
provide some specific documentation on how the program 
coordinates with the industrial sector.
    And once again, I thank my colleague, Mr. Inglis, for 
working with me. I encourage all of our colleagues to support 
this amendment.
    And I yield back the balance of my time.
    [The prepared statement of Mr. Lampson follows:]
           Prepared Statement of Representative Nick Lampson
    Mr. Chairman, I have an amendment at the desk.
    This amendment incorporates suggestions by witnesses at our hearing 
and outside stakeholders who provided comments on the bill. I want to 
thank Mr. Inglis for working with us on this amendment that makes some 
minor corrections and additions to the bill.
    We have added an additional finding to further highlight the past 
successes of the program in working with certain energy intensive 
industries.
    In addition, this amendment strikes subsection (c) of Section 3, to 
eliminate duplicative statements of authority already given to the 
Secretary of Energy. Finally, the amendment adds a biannual report to 
be submitted to Congress to provide added accountability and provide 
some specific documentation on how the program coordinates with the 
industrial sector.
    Once again, I thank my colleague, Mr. Inglis for working with me, 
and I encourage all of my colleagues to support this amendment.
    I yield back the balance of my time.

    Chairman Gordon. Does anyone else wish to be recognized?
    Mr. Inglis. Just briefly.
    Chairman Gordon. Mr. Inglis is recognized.
    Mr. Inglis. I just echo what Mr. Lampson said and add this. 
The Department of Energy is rightly focused on some exciting 
industries that are very sexy and may yield some real energy 
savings, but then there are also these existing industries that 
use a huge amount of energy that we hope they continue to focus 
in on, because that is where additional gains can be made.
    So while we go after things like high-tech industries and 
computers, technologies, applications, those sorts of things, 
we also need to continue to focus on the Nation's steel, 
chemical, metal casting, forest products, glass, petroleum, 
mining, and other manufacturings that have a track record of 
joining public and private dollars to increase sufficiency and 
decrease energy consumption.
    I trust that that is what this amendment will help see that 
the Department of Energy focuses on these existing industries 
as well as the new and exciting ones.
    Thank you, Mr. Chairman.
    Chairman Gordon. Any further discussion?
    If no, the vote occurs on the amendment. All in favor, say 
aye. Those opposed, say no. The ayes have it. The amendment is 
agreed to.
    Are there other amendments? If no, then the vote is on the 
bill, H.R. 3775 as amended. All those in favor will say aye. 
All those opposed, no. In the opinion of the Chair the ayes 
have it.
    I recognize Mr. Hall to offer a motion.
    Mr. Hall. Mr. Chairman, I move that the Committee favorably 
report H.R. 3775 as amended to the House with the 
recommendation that the bill do pass.
    Furthermore, I move that the staff be instructed to make 
necessary technical and conforming changes and that the 
Chairman take all the necessary steps to bring the bill before 
the House for consideration.
    I yield back.
    Chairman Gordon. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye. Opposed, no. The ayes have it. The bill is 
favorably reported.
    Without objection the motion to reconsider is laid upon the 
table. Members will have two subsequent days in which to submit 
supplemental, Minority, or additional views on the measure, 
ending Friday, October the 19th, at 9:00 a.m.
    I move pursuant to Clause 1 of Rule 22 of the Rules of the 
House of Representatives that the Committee authorize the 
Committee to, Chairman to offer such motions as may be 
necessary in the House to adopt and pass H.R. 3775, Industrial 
Energy Efficiency Research and Development Act of 2007, as 
amended.
    Without objection, so ordered.
    Let me thank the Members for being here today. This is a 
good showing. These are two good bills, and they are really 
going to make us relevant in this, our Energy Bill, and I hope 
that all of you will go home and take credit for these, because 
these are well thought-out bipartisan bills. And now the 
Committee, unless there is, anyone else has any remarks, 
suggestions for today. If not, the Committee concludes.
    [Whereupon, at 10:35 a.m., the Committee was adjourned.]
                               Appendix:

                              ----------                              


              Subcommittee Markup Report, Amendment Roster





                 SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
                    REPORT FROM SUBCOMMITTEE MARKUP
                            October 10, 2007

 H.R. 3775, the Industrial Energy Efficiency Research and Development 
                              Act of 2007

I. Purpose

    The purpose of this bill is to authorize and support research, 
development, demonstration, and commercial application of new 
industrial processes and technologies that will optimize energy 
efficiency and environmental performance of energy intensive 
industries; to enhance research and development through better 
coordination of interdepartmental research; and to expand Industrial 
Assessment Centers programs at universities.

II. Background and Need for Legislation

    An expanding economy, growing population, and rising standard of 
living create rapidly growing demands for energy, making energy 
conservation a key national goal. In the U.S. industry is responsible 
for more than one-third of all energy consumed, the large majority of 
which is consumed by manufacturing industries such as chemical, glass 
and metals production, mining, petroleum refining, and forest and paper 
products. These industries require very large amounts of energy per 
unit of production, making them particularly susceptible to high energy 
prices. These and other energy-intensive industries are ideal 
candidates on which to focus federal R&D efforts and apply new 
technologies increase efficiency, raise productivity, reduce wastes, 
and trim costs.
    The Energy Efficiency and Renewable Energy's (EERE) Industrial 
Technologies Program (ITP) at the Department of Energy (DOE), works to 
improve the energy intensity of U.S. industry through coordinated 
research and development and dissemination of innovative energy 
efficiency technologies and practices. The ITP invests in high-risk, 
high-value cost-shared R&D projects to reduce industrial energy use and 
process waste streams, while stimulating productivity and growth. 
Competitive solicitations are the principal mechanism used by ITP to 
conduct cost-shared R&D. Solicitations reflect the priorities of the 
Program and selection of projects follows merit-based criteria that 
emphasize projected energy, environmental, and economic benefits. In 
addition, ITP makes available information and resources on other 
financial assistance and research opportunities and case studies from 
past ITP projects. The ITP portfolio details over 1,000 technology 
development projects in which ITP has been involved.
    The Industrial Technologies Program claims numerous successes. The 
ITP is considered one of the most effective DOE programs at 
transferring technologies, with over 170 technologies reaching the 
commercial market. An estimated 13,000 U.S. manufacturing plants have 
been improved through the ITP technology delivery effort. Nearly five 
quadrillion Btu of energy (equal to approximately $23 billion) of 
energy savings are attributed to the program since its inception, with 
366 trillion Btu saved in 2004 alone.
    The ITP also sponsors 26 University-Based Industrial Assessment 
Centers (IACs) that provide no-cost energy assessments primarily to 
small-and medium-sized manufacturers. Assessments are conducted by 
teams of faculty and students, and involve examinations of potential 
savings from energy efficiency improvements, waste minimization and 
pollution prevention, and productivity improvement. The average 
expected savings per assessment is fifty to seventy thousand dollars, 
with much larger savings possible with large operations. Companies are 
in turn encouraged to replicate accomplishments and share results.
    By operating through university engineering programs the IACs serve 
as a training ground for the next-generation of energy and industrial 
engineers. Roughly 240 students receive training through the program 
each year. When budgets for the program were higher 38 IACs operated 
around the country, compared to the 26 in operation today.
    While the U.S. industrial sector has become much more energy 
efficient over the past 30 years, there are still ample opportunities 
to achieve efficiency gains. However, energy-intensive industries face 
enormous competitive pressures that make it difficult to make the 
necessary R&D investments in technology development. Energy-intensive 
industries tend to exhibit relatively low levels of R&D spending, and 
are often unwilling to accept the risks associated with undertaking 
complex capital-intensive technology development and implementation. 
Constantly changing market conditions, energy prices, and other 
business concerns affect the ability and willingness of industry to 
pursue energy efficiency opportunities. As the role of energy in 
industry changes, the ITP should have the resources to sustain and 
expand operations, adapt, and reshape its strategy where needed. 
Without a sustained commitment by the private and public sectors to 
invest in technology R&D and adopt new technologies, the ability to 
close the gap between U.S. energy supply and demand will be greatly 
limited.
    The budget for Industrial Technologies Program has decreased 
dramatically in recent years. The Fiscal Year 2007 budget request for 
Industrial Technologies was $45.6 million, an $11.3 million reduction 
from the Fiscal Year 2006 Appropriation. By comparison, appropriated 
levels as recently as Fiscal Year 2000 were as high as $175 million. 
These funding levels reflect a dramatic shift in priorities away from 
industrial efficiency R&D. This legislation is needed to ensure 
continued gains in industrial energy efficiency and environmental 
performance through research and development.

III. Subcommittee Actions

    The Energy and Environment Subcommittee held a hearing on Tuesday, 
September 25, 2007 to hear testimony relevant to the Industrial 
Technologies Program and to receive comments on a discussion draft of a 
bill to authorize funding and provide guidelines for the program. The 
Subcommittee heard from four witnesses representing diverse viewpoints 
on the program:

         Mr. Malcolm Verdict, C.E.M., Associate Director of the 
        Energy Systems Laboratory within the Texas Engineering 
        Experiment Station (TEES) at Texas A&M University.

          Mr. Fred Moore, Global Director of Manufacturing and 
        Technology for Dow Chemical's Energy Business, and Chairman of 
        the Energy Efficiency Task Force of the National Association of 
        Manufacturers.

         Mr. Lawrence Kavanagh, Vice President of Manufacturing 
        and Technology for the American Iron and Steel Institute 
        (AISI).

          Mr. Paul Cicio, President at Industrial Energy 
        Consumers of America.

    On October 9, 2007, Representative Nick Lampson, Chairman of the 
Energy and Environment Subcommittee introduced H.R. 3775, the 
Industrial Energy Efficiency Research and Development Act of 2007.
    The Subcommittee on Energy and Environment met to consider H.R. 
3775 on October 10, 2007, with no amendments to the bill. Mr. McNerney 
moved that the Subcommittee favorably report the bill, H.R. 3775, to 
the Full Committee on Science and Technology. The motion was agreed to 
by a voice vote.

IV. Summary of Major Provisions

    H.R. 3775 authorizes $150 million for each fiscal year 2009092013 
to the Department of Energy to support research, development, 
demonstration, and commercial application of new industrial processes 
and technologies to optimize energy efficiency and environmental 
performance of the U.S. industrial sector, and expand the Industrial 
Assessment Centers program at universities. The bill specifically 
encourages research, development and demonstration to improve the 
quality, quantity, and alternative resources of industrial feedstocks; 
using new alternative energy technologies; and achieving greater energy 
efficiency in steam, power, control system, and process heat 
technologies in energy-intensive industries. H.R. 3775 also allows for 
competitive awards to individuals and small businesses for novel energy 
savings concepts and inventions. H.R. 3775 enhances research and 
development efforts through cooperation with energy intensive 
industries, industry trade associations, and institutions of higher 
education and through better coordination of interdepartmental research 
as well as with other federal agencies.

V. Section-by-Section Analysis of the bill as reported by the 
                    Subcommittee

SECTION 1. SHORT TITLE

    ``The Industrial Energy Efficiency Research and Development Act of 
2007''

SEC. 2. FINDINGS

    The U.S. Industrial sector accounts for more energy use (32 
percent) than the residential, commercial, or transportation sectors. 
Industries have almost reached optimal energy efficiencies and new 
innovations and technologies' research, development, and demonstration 
are necessary to increase energy efficiency and diversify energy and 
feedstock sources.

SEC. 3. INDUSTRIAL TECHNOLOGIES PROGRAM

    Establishes a program within the Department of Energy to work with 
energy-intensive industries, industry trade associations, and 
institutions of higher education to conduct cost-shared research, 
development, demonstration, and commercial application activities for 
new innovations and technologies to enhance industrial efficiency and 
economic competitiveness of U.S. industrial sector.
    Defines the activities of the program to include: research to 
improve the quality and quantity of feedstocks recovered from waste 
streams; to develop alternative resources for use as industrial 
feedstocks; developing alternative energy sources to supply heat and 
power for energy-intensive industries; and achieve overall energy 
efficiency in manufacturing processes.

SEC. 4. UNIVERSITY-BASED INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS

    Requires the Secretary to fund University-based Industrial Research 
and Assessment Centers to aid small and medium sized manufacturers by 
identifying opportunities to optimize their energy efficiency and 
improve environmental performance through advanced technologies, to 
serve as a resource for technical data, and to train engineering and 
research students to conduct energy assessments.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS

    $150 million is authorized for each fiscal year 2009-2013.

    
    
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