[Senate Report 110-162]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 360
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-162

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



 
                     ENERGY TECHNOLOGY TRANSFER ACT

                                _______
                                

               September 17, 2007.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany H.R. 85]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 85) to provide for the establishment of 
centers to encourage demonstration and commercial application 
of advanced energy methods and technologies, having considered 
the same, reports favorably thereon without amendment and 
recommends that the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 85 is to amend section 917 of the 
Energy Policy Act of 2005 (42 U.S.C. 16197) to give the 
Secretary of Energy additional direction in making grants to 
Advanced Energy Efficiency Technology Transfer Centers.

                          Background and Need

    Section 917 of the Energy Policy Act of 2005 directs the 
Secretary of Energy to make grants to nonprofit institutions, 
state and local governments, or universities to establish a 
geographically dispersed network of Advanced Energy Efficiency 
Technology Transfer Centers. The purpose of the Centers is to 
encourage demonstration and commercial application of advanced 
energy efficiency methods and technologies through education 
and outreach to building and industrial professionals, and to 
other individuals and organizations interested in energy 
efficiency.
    As enacted, section 917 gives little guidance to the 
Secretary on awarding grants, the activities for which Centers 
may use grants, the contents of grant applications, selection 
criteria, and the duration of grants. In addition, section 917 
limits the scope of the program to the transfer of advanced 
energy efficiency technology, and the section is unclear on 
whether it permits the Secretary to make grants to existing 
community outreach networks, such as the Cooperative Extension 
System.
    H.R. 85 is needed to improve the Advanced Energy Efficiency 
Technology Transfer Center program, by expanding it to all 
advanced energy technology transfer, including cooperative 
extension services in the list of eligible grant recipients, 
providing additional criteria for the Secretary to consider in 
awarding grants, and establishing new requirements and 
restrictions on grant recipients. In addition, H.R. 85 is 
needed to eliminate an unnecessary advisiory committee 
authorized by section 917.

                          Legislative History

    H.R. 85 was introduced in the House of Representatives by 
Congresswoman Biggert. The Committee on Science and Technology 
ordered it reported, with an amendment in the nature of a 
substitute on February 28, 2007. The House passed it, 395-1, on 
March 12, 2007.
    The Subcommittee on Energy of the Committee on Energy and 
Natural Resources held a legislative hearing on H.R. 85 on May 
22, 2007. The Committee on Energy and Natural Resources ordered 
the bill favorably reported, without amendment, on July 25, 
2007.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on July 25, 2007, by a voice vote of a quorum 
present, recommends that the Senate pass H.R. 85.

                      Section-by-Section Analysis

    Section 1 designates ``the Energy Technology Transfer Act'' 
as the short title.
    Section 2 amends section 917 of the Energy Policy Act of 
2005.
    Section 917(a) authorizes the Secretary of Energy to make 
grants to nonprofit institutions, State and local governments, 
cooperative extension services, or institutions of higher 
education (or consortia thereof), to establish a geographically 
dispersed network of Advanced Energy Efficiency Technology 
Centers. As originally enacted, subsection (a) required the 
Secretary to begin making grants within 18 months after the 
date of enactment of the Energy Policy Act of 2005 (August 8, 
2005), did not include cooperative extension services in the 
list of institutions eligible to receive grants, and required 
the Secretary to consider the special needs and opportunites 
for increased energy efficiency for manufactured and site-built 
housing. As amended, subsection (a) requires the Secretary to 
begin making grants within 18 months after the date of 
enactment of H.R. 85, includes cooperative extension services 
in the list of eligible institutions, and directs the Secretary 
to give priority to applicants already operating or partnered 
with an outreach program capable of transferring knowledge and 
information about advanced energy efficiency technology, to 
ensure that the program enables the transfer of knowledge about 
a variety of technologies in a variety of geographical areas, 
and to give preference to applicants that would significantly 
expand or fill a gap in existing energy technology transfer 
programs.
    Section 917(b) provides that each Advanced Energy 
Efficiency Technology Transfer Center shall operate a program 
to encourage demonstration and commercial application of 
advanced energy methods and technologies through education and 
outreach to building and industrial professionals, and to other 
individuals and organizations with an interest in efficent 
energy use. As amended, subsection (b) lists 6 specific 
activities for which funds awarded under section 917 may be 
used. Permissible activities under subsection (b), as amended, 
include developing and distributing materials on energy 
conservation technologies, carrying out demonstrations, 
developing and conducting seminars and other learning 
activities, providing onsite energy evaluations, examining 
energy efficiency needs of energy end-users to develop research 
projects for the Department of Energy, and hiring experts to 
carry out these activities.
    Section 917(c) requires a person seeking a grant to submit 
an application to the Secretary. As amended, subsection (c) 
lists the minimum contents of an application. It requires 
applicants to describe their outreach programs, geographical 
areas of service, their technology transfer capabilities, the 
activities they plan to carry out, why these activities fit 
their regions, the number and types of energy users they expect 
to reach, and how they will assess success of the program.
    Section 917(d) sets out the selection criteria the 
Secretary is to use to award grants. As originally enacted, 
subsection (d) required to the Secretary to consider the 
ability of the applicant to carry out the proposed activities 
and the extent to which the applicant will coordinate the 
activities of the Center with other entities. As amended, 
subsection (d) also requires the Secretary to consider the 
appropriateness of the applicant's outreach program and the 
likelihood that the proposed activities could be expanded or 
used as a model for other areas.
    Section 917(e) provides that the cost sharing requirements 
of section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
16352) apply to grants awarded under section 917.
    Section 917(f) provides that grants shall be awarded for 
five years. In the third year of operation the grantees are to 
be evaluated by the Department of Energy. If the evaluation is 
unsatisfactory, the grant is to be terminated. If the 
evaluation is positive, the grant may be extended for an 
additional three years and if a later evaluation is positive, 
the grant may be extended for a final three years.
    Section 917(g) forbids the use of funds under this section 
for construction of facilities.
    Section 917(h) defines the terms Advanced Energy Methods 
and Technologies, Center, Distributed Generation, Cooperative 
Extension, and Land-Grant Colleges and Universities.
    Section 917(i) authorizes such sums as may be appropriated 
to carry out section 917.

                     Cost and Budget Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

                                                   August 15, 2007.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 85, the Energy 
Technology Transfer Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 85--Energy Technology Transfer Act

    H.R. 85 would amend a provision of the Energy Policy Act of 
2005 that authorizes the Department of Energy (DOE) to provide 
grants to state and local governments, nonprofit organizations, 
and institutions of higher learning for purposes of educating 
the public about energy-efficient technologies. H.R. 85 would 
specify additional criteria for DOE to consider in awarding 
such grants and would establish new requirements for recipients 
of those grants.
    Based on information from DOE, CBO estimates that 
implementing H.R. 85 would not significantly affect the federal 
budget. We expect that any change in the value of grants 
awarded under the legislation or the agency's costs to 
administer them would not exceed $500,000 annually, assuming 
the availability of appropriated funds. Enacting H.R. 85 would 
not affect direct spending or revenues.
    H.R. 85 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    On March 7, 2007, CBO transmitted a cost estimate for H.R. 
85 as ordered reported by the House Committee on Science and 
Technology on February 28, 2007. The two versions of H.R. 85 
are similar, and our cost estimates are the same.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Peter H. Fontaine, Assistant 
Director for Budget Analysis.

                           Regulatory Impact

    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 H.R. 85.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    The Secretary may need to collect some personal information 
from grant applicants. The Committee expects the Secretary to 
limit the collection of personal information to the minimum 
amount needed to adequately administer the programs, and 
therefore anticipates little impact on personal privacy.
    Enactment of H.R. 85 will result in the production of 
various applications, reports, and performance assessments 
necessary to the administration of the various programs 
authorized by the bill. Again, the Committee expects the 
Secretary to limit paperwork requirements to the minimum amount 
needed to adequately administer the program.

                        Executive Communication

    At a legislative hearing before the Committee on Energy and 
Natural Resources on May 22, 2007, the Department of Energy 
provided the following testimony on H.R. 85:

   Statement of David R. Hill, General Counsel, Department of Energy

    Chairman Dorgan, Senator Murkowski, and members of the 
Committee, my name is David Hill and I am the General Counsel 
of the U.S. Department of Energy (Department or DOE). I want to 
thank you for the opportunity to appear today and offer 
preliminary comments on five energy-related bills that the 
Congress is considering. The bills before the Committee today 
each make valuable contributions to our national discussion on 
energy security, but in some cases could benefit from further 
review, discussion and modification. The Department looks 
forward to working with the Committee to resolve these issues. 
I would like to discuss the elements of each bill, as well as 
present some of the DOE activities that are already underway in 
areas addressed by the bills.

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                                h.r. 85


    Turning to H.R. 85, this bill targets the demonstration and 
commercial application of advanced energy methods and 
technologies, a goal that effectively summarizes what we as a 
nation must do to successfully move innovative products and 
processes from the laboratory into everyday use. This bill 
amends Section 917 of the Energy Policy Act of 2005 (EPACT), 
which established advanced Energy Efficiency Technology 
Transfer Centers. EERE recently announced a solicitation under 
Section 917. It is our belief that extension services, which 
are added here, already can participate in the Centers. In 
addition, there are some technical issues which require further 
review and discussion, and we look forward to working with the 
Committee to resolve these minor concerns.
    The Department also is addressing the challenge of 
successful technology transfer by, among other things, 
supporting a robust and widespread regional and local outreach 
effort to ensure the adoption and commercial application of 
industrial and building energy system technologies and 
practices. For example, in coordination with the Department 
Golden Field Office, we are instituting a new method of project 
management, called Stage Gating that incorporates the 
demonstration of technologies in the last stage of Federal 
development as part of deployment/technology transfer for 
commercialization. Through our Industrial Technologies Program, 
EERE works through Congressionally established Industrial 
Assessment Centers to provide energy evaluations and to help 
deploy advanced energy methods and technologies to small and 
medium-sized companies. Recently we have broadened this effort 
by establishing a Memorandum of Understanding (MOU) with the 
Manufacturing Extension Partnership (MEP) program of the 
Department of Commerce National Institute of Science and 
Technology (NIST). The MEP program consists of 59 main centers 
across the Nation, and will significantly increase our ability 
to deploy advanced energy methods and technologies to thousands 
of manufacturing facilities and buildings.
    EERE is currently establishing working relationships with 
the various types of centers I have mentioned to coordinate the 
demonstration and application of advanced energy methods and 
technologies. Key to this coordinated effort will be the 
integration of deployment activities with EERE state 
partnerships. Any kind of regionally focused efforts would need 
state involvement to leverage state-sponsored energy programs.
    Thus, given the activity level already underway with a 
broad range of centers, it would not seem that the 
establishment of the additional centers would be needed. There 
is much to work with to advance our technology transfer goals, 
and our focus at the Department is on the successful support, 
use, and coordination of our tools at hand.

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                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 85, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                     THE ENERGY POLICY ACT OF 2005

                    Public Law 109-58--Aug. 8, 2005


   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy.

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TITLE IX--RESEARCH AND DEVELOPMENT

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Subtitle A--Energy Efficiency

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[SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.

    [(a) Grants.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall make grants to 
nonprofit institutions, State and local governments, or 
universities (or consortia thereof), to establish a 
geographically dispersed network of Advanced Energy Efficiency 
Technology Transfer Centers, to be located in areas the 
Secretary determines have the greatest need of the services of 
such Centers. In establishing the network, the Secretary shall 
consider the special needs and opportunities for increased 
energy efficiency for manufactured and site-built housing.
    [(b) Activities.--
          [(1) In general.--Each Center shall operate a program 
        to encourage demonstration and commercial application 
        of advanced energy methods and technologies through 
        education and outreach to building and industrial 
        professionals, and to other individuals and 
        organizations with an interest in efficient energy use.
          [(2) Advisory panel.--Each Center shall establish an 
        advisory panel to advise the Center on how best to 
        accomplish the activities under paragraph (1).
    [(c) Application.--A person seeking a grant under this 
section shall submit to the Secretary an application in such 
form and containing such information as the Secretary may 
require. The Secretary may award a grant under this section to 
an entity already in existence if the entity is otherwise 
eligible under this section.
    [(d) Selection Criteria.--The Secretary shall award grants 
under this section on the basis of the following criteria, at a 
minimum:
          [(1) The ability of the applicant to carry out the 
        activities described in subsection (b)(1).
          [(2) The extent to which the applicant will 
        coordinate the activities of the Center with other 
        entities, such as State and local governments, 
        utilities, and educational and research institutions.
    [(e) Cost-Sharing.--In carrying out this section, the 
Secretary shall require cost-sharing in accordance with the 
requirements of section 988 for commercial application 
activities.
    [(f) Advisory Committee.--The Secretary shall establish an 
advisory committee to advise the Secretary on the establishment 
of Centers under this section. The advisory committee shall be 
composed of individuals with expertise in the area of advanced 
energy methods and technologies, including at least one 
representative from--
          [(1) State or local energy offices;
          [(2) energy professionals;
          [(3) trade or professional associations;
          [(4) architects, engineers, or construction 
        professionals;
          [(5) manufacturers;
          [(6) the research community; and
          [(7) nonprofit energy or environmental organizations.
    [(g) Definitions.--For purposes of this section:
          [(1) Advanced energy methods and technologies.--The 
        term ``advanced energy methods and technologies'' means 
        all methods and technologies that promote energy 
        efficiency and conservation, including distributed 
        generation technologies, and life-cycle analysis of 
        energy use.
          [(2) Center.--The term ``Center'' means an Advanced 
        Energy Technology Transfer Center established pursuant 
        to this section.
          [(3) Distributed generation.--The term ``distributed 
        generation'' means an electric power generation 
        facility that is designed to serve retail electric 
        consumers at or near the facility site.
    [(h) Authorization of Appropriations.--In addition to 
amounts otherwise authorized to be appropriated in section 911, 
there are authorized to be appropriated for the program under 
this section such sums as may be appropriated.]

SEC. 917. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.

    (a) Grants.--Not later than 18 months after the date of 
enactment of the Energy Technology Transfer Act, the Secretary 
shall make grants to nonprofit institutions, State and local 
governments, cooperative extension services, or institutions of 
higher education (or consortia thereof), to establish a 
geographically dispersed network of Advanced Energy Technology 
Transfer Centers, to be located in areas the Secretary 
determines have the greatest need of the services of such 
Centers. In making awards under this section, the Secretary 
shall--
          (1) give priority to applicants already operating or 
        partnered with an outreach program capable of 
        transferring knowledge and information about advanced 
        energy efficiency methods and technologies;
          (2) ensure that, to the extent practicable, the 
        program enables the transfer of knowledge and 
        information--
                  (A) about a variety of technologies and
                  (B) in a variety of geographic areas;
          (3) give preference to applicants that would 
        significantly expand on or fill a gap in existing 
        programs in a geographical region; and
          (4) consider the special needs and opportunities for 
        increased energy efficiency for manufactured and site-
        built housing, including construction, renovation, and 
        retrofit.
    (b) Activities.--Each Center shall operate a program to 
encourage demonstration and commercial application of advanced 
energy methods and technologies through education and outreach 
to building and industrial professionals, and to other 
individuals and organizations with an interest in efficient 
energy use. Funds awarded under this section may be used for 
the following activities:
          (1) Developing and distributing informational 
        materials on technologies that could use energy more 
        efficiently.
          (2) Carrying out demonstrations of advanced energy 
        methods and technologies.
          (3) Developing and conducting seminars, workshops, 
        long-distance learning sessions, and other activities 
        to aid in the dissemination of knowledge and 
        information on technologies that could use energy more 
        efficiently.
          (4) Providing or coordinating onsite energy 
        evaluations, including instruction on the commissioning 
        of building heating and cooling systems, for a wide 
        range of energy end-users.
          (5) Examining the energy efficiency needs of energy 
        end-users to develop recommended research projects for 
        the Department.
          (6) Hiring experts in energy efficient technologies 
        to carry out activities described in paragraphs (1) 
        through (5).
    (c) Application.--A person seeking a grant under this 
section shall submit to the Secretary an application in such 
form and containing such information as the Secretary may 
require. The Secretary may award a grant under this section to 
an entity already in existence if the entity is otherwise 
eligible under this section. The application shall include, at 
a minimum--
          (1) a description of the applicant's outreach 
        program, and the geographic region it would serve, and 
        of why the program would be capable of transferring 
        knowledge and information about advanced energy 
        technologies that increase efficiency of energy use;
          (2) a description of the activities the applicant 
        would carry out, of the technologies that would be 
        transferred, and of any other organizations that will 
        help facilitate a regional approach to carrying out 
        those activities;
          (3) a description of how the proposed activities 
        would be appropriate to the specific energy needs of 
        the geographic region to be served;
          (4) an estimate of the number and types of energy 
        end-users expected to be reached through such 
        activities; and
          (5) a description of how the applicant will assess 
        the success of the program.
    (d) Selection Criteria.--The Secretary shall award grants 
under this section on the basis of the following criteria, at a 
minimum:
          (1) The ability of the applicant to carry out the 
        proposed activities.
          (2) The extent to which the applicant will coordinate 
        the activities of the Center with other entities as 
        appropriate, such as State and local governments, 
        utilities, institutions of higher education, and 
        National Laboratories.
          (3) The appropriateness of the applicant's outreach 
        program for carrying out the program described in this 
        section.
          (4) The likelihood that proposed activities could be 
        expanded or used as a model for other areas.
    (e) Cost-Sharing.--In carrying out this section, the 
Secretary shall require cost-sharing in accordance with the 
requirements of section 988 for commercial application 
activities.
    (f) Duration.--
          (1) Initial grant period.--A grant awarded under this 
        section shall be for a period of 5 years.
          (2) Initial evaluation.--Each grantee under this 
        section shall be evaluated during its third year of 
        operation under procedures established by the Secretary 
        to determine if the grantee is accomplishing the 
        purposes of this section described in subsection (a). 
        The Secretary shall terminate any grant that does not 
        receive a positive evaluation. If an evaluation is 
        positive, the Secretary may extend the grant for 3 
        additional years beyond the original term of the grant.
          (3) Additional extension.--If a grantee receives an 
        extension under paragraph (2), the grantee shall be 
        evaluated again during the second year of the 
        extension. The Secretary shall terminate any grant that 
        does not receive a positive evaluation. If an 
        evaluation is positive, the Secretary may extend the 
        grant for a final additional period of 3 additional 
        years beyond the original extension.
          (4) Limitation.--No grantee may receive more than 11 
        years of support under this section without reapplying 
        for support and competing against all other applicants 
        seeking a grant at that time.
    (g) Prohibition.--None of the funds awarded under this 
section may be used for the construction of facilities.
    (h) Definitions.--For purposes of this section:
          (1) Advanced energy methods and technologies.--The 
        term ``advanced energy methods and technologies'' means 
        all methods and technologies that promote energy 
        efficiency and conservation, including distributed 
        generation technologies, and life-cycle analysis of 
        energy use.
          (2) Center.--The term ``Center'' means an Advanced 
        Energy Technology Transfer Center established pursuant 
        to this section.
          (3) Distributed generation.--The term ``distributed 
        generation'' means an electric power generation 
        technology, including photovoltaic, small wind, and 
        micro-combined heat and power, that serves electric 
        consumers at or near the site of production.
          (4) Cooperative extension.--The term ``Cooperative 
        Extension'' means the extension services established at 
        the land-grant colleges and universities under the 
        Smith-Lever Act of May 8, 1914.
          (5) Land-grant colleges and universities.--The term 
        ``land-grant colleges and universities'' means--
                  (A) 1862 Institutions (as defined in section 
                2 of the Agricultural Research, Extension, and 
                Education Reform Act of 1998 (7 U.S.C. 7601));
                  (B) 1890 Institutions (as defined in section 
                2 of that Act); and
                  (C) 1994 Institutions (as defined in section 
                2 of that Act).
    (i) Authorization of Appropriations.--In addition to 
amounts otherwise authorized to be appropriated in section 911, 
there are authorized to be appropriated for the program under 
this section such sums as may be appropriated.

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