[House Report 117-367]
[From the U.S. Government Publishing Office]


117th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       117-367

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



 
                 COST-SHARE ACCOUNTABILITY ACT OF 2022

                                _______
                                

 June 14, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Ms. Johnson of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                        [To accompany H.R. 6933]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 6933) to amend the Energy Policy 
Act of 2005 to require reporting relating to certain cost-share 
requirements, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                    Page
   I. Amendment....................................................... 1
  II. Purpose of the Bill............................................. 2
 III. Background and Need for the Legislation......................... 2
  IV. Committee Hearings.............................................. 3
   V. Committee Consideration and Votes............................... 3
  VI. Summary of Major Provisions of the Bill......................... 3
 VII. Section-By-Section Analysis (By Title and Section).............. 3
VIII. Committee Views................................................. 4
  IX. Cost Estimate................................................... 4
   X. Congressional Budget Office Cost Estimate....................... 4
  XI. Compliance with Public Law 104-4 (Unfunded Mandates)............ 5
 XII. Committee Oversight Findings and Recommendations................ 5
XIII. Statement on General Performance Goals and Objectives........... 5
 XIV. Federal Advisory Committee Statement............................ 5
  XV. Duplication of Federal Programs................................. 6
 XVI. Earmark Identification.......................................... 6
XVII. Applicability to the Legislative Branch......................... 6
XVIII.Statement on Preemption of State, Local, or Tribal Law.......... 6

 XIX. Changes in Existing Law Made by the Bill, As Reported........... 6
  XX. Proceedings of Full Committee Markup............................ 9

                        II. Purpose of the Bill

    The purpose of the bill is to amend the Energy Policy Act 
of 2005 to require reporting relating to certain cost-share 
requirements, and for other purposes. H.R. 6933 is sponsored by 
Mr. Obernolte and co-sponsored by Mr. Foster.

              III. Background and Need for the Legislation

    Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
16352) establishes cost-share requirements for most research, 
development, demonstration, and commercial application 
activities of the Department of Energy (the Department). The 
Department must require that not less than 20% of the cost of a 
research and development activity, as well as not less than 50% 
of the cost of a demonstration or commercial application 
activity, be provided by a non-Federal source. However, the 
Secretary of Energy (the Secretary) may reduce or eliminate 
this requirement for applied research and development 
activities if the Secretary determines that this is necessary 
or appropriate. Similarly, the Secretary may reduce this 
requirement for demonstration or commercial application 
activity, if the Secretary determines it necessary and 
appropriate, taking into consideration technological risk of 
the activity.
    Current law contains no permanent requirement for the 
Department to report to Congress on the use of its authority to 
reduce or eliminate the statutory cost-share requirement. As 
such, it is difficult for Congress to examine the use of this 
authority. Greater visibility into the Department's use of this 
ability would facilitate Congressional oversight of the 
Department's awards and contracts, as well as inform future 
potential legislation to modify the cost-share requirements.
    Transparency and active oversight of Department awards and 
contracts are especially critical with the recent passage of 
legislation authorizing numerous new research, development, 
demonstration, and commercial application programs across the 
Department. The Energy Act of 2020 (division Z of the 
Consolidated Appropriations Act, 2021, Public Law 116-260) 
authorized a number of research, development, demonstration, 
and commercial application activities, including the Advanced 
Reactor Demonstration Program, enhanced geothermal systems 
demonstrations, and carbon capture demonstration projects. 
Similarly, the Infrastructure Investment and Jobs Act (Public 
Law 117-58) created additional clean energy programs, expanded 
or added new authorizations of funding for programs in the 
Energy Act of 2020, and appropriated billions of dollars for 
such activities.
    At an October 21, 2021 joint hearing of the Investigations 
and Oversight Subcommittee and Energy Subcommittee of the 
Committee on Science, Space, and Technology, ``Judicious 
Spending to Enable Success at the Office of Nuclear Energy,'' 
Committee Members questioned Acting Assistant Secretary for 
Nuclear Energy Dr. Kathryn Huff on how the Department applied 
the cost-share requirement in regards to recent awards by the 
Office of Nuclear Energy. A reporting requirement would 
facilitate more timely, effective communication with Congress 
about the Department's financial assistance and contracting 
practices.

                         IV. Committee Hearings

    Pursuant to clause 3(c)(6) of rule XIII of the Rules of the 
House of Representatives, the Committee designates the 
following hearing as having been used to develop or consider 
the legislation:
    On October 21, 2021, the Investigations and Oversight 
Subcommittee and the Energy Subcommittee of the Committee on 
Science, Space, and Technology Committee held a joint hearing 
entitled, ``Judicious Spending to Enable Success at the Office 
of Nuclear Energy,'' to review several large financial 
assistance awards made by the Department's Office of Nuclear 
Energy. The hearing examined the Department's practices for 
financial assistance awards and contracts, including the use of 
sole-source awards, protections to limit taxpayer risk, and use 
of its authority to reduce or eliminate the cost-share 
requirement in section 988 of the Energy Act of 2005.

                               WITNESSES

           Dr. Kathryn Huff, Acting Assistant 
        Secretary, Office of Nuclear Energy, U.S. Department of 
        Energy
           Ms. Amy Roma, Founding Member, Nuclear 
        Energy and National Security Coalition, Atlantic 
        Council and Partner, Hogan Lovells US LLP
           Dr. Todd Allen, Director, Michigan Memorial 
        Phoenix Project and Glenn F. and Gladys H. Knoll 
        Department Chair of Nuclear Engineering and 
        Radiological Science, University of Michigan
           Mr. Scott Amey, General Counsel and 
        Executive Editorial Director, Project on Government 
        Oversight

                  V. Committee Consideration and Votes

    The Committee on Science, Space, and Technology met to 
consider H.R. 6933 on Tuesday, April 5, 2022.
    Ms. Lofgren, presiding, moved that the Committee favorably 
report the bill, H.R. 6933, to the House of Representatives 
with the recommendation that the bill be approved. The motion 
was agreed to by a voice vote.

              VI. Summary of Major Provisions of the Bill

    The Cost-Share Accountability Act of 2022 amends the Energy 
Policy Act of 2005 to require the Secretary to submit reports 
to the listed committees of Congress on the Department's use of 
its statutory authority to reduce or eliminate the cost-share 
requirements for research, development, demonstration, and 
commercial application activities. It also requires the 
Department to make this report available to the public.

        VII. Section-by-Section Analysis (By Title and Section)


Sec. 1. Short title

    Section 1 establishes that this legislation may be referred 
to as the ``Cost-Share Accountability Act of 2022''.

Sec. 2. Reporting requirements

    This section amends section 988 of the Energy Policy Act 
(42 U.S.C. 16352) (section 988) to require the Secretary of 
Energy to submit a report, not later than 120 days after 
enactment and at least quarterly thereafter, on the 
Department's use during that time period of its authority to 
reduce or eliminate the cost-share requirements under section 
988 for the Department's research, development, demonstration, 
and commercial application activities. It also requires the 
Department to submit the report to the Committee on Science, 
Space, and Technology, and the Committee on Appropriations of 
the House of Representatives as well as the Committee on Energy 
and Natural Resources and the Committee on Appropriations of 
the Senate, and make the report publicly available.

                         VIII. Committee Views

    The Committee does not intend for this legislation to 
discourage the Department from using its authority to eliminate 
or reduce the cost-sharing requirements in section 988, when 
appropriate, or hinder the Department's ability to encourage 
increased participation in its programs. Rather, the Committee 
intends for the legislation to assist Congress in partnering 
with the Department to make sure it invests Federal research 
and development funds effectively.

                           IX. Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

              X. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 16, 2022.
Hon. Eddie Bernice Johnson,
Chairwoman, Committee on Science, Space, and Technology, House of 
        Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6933, the Cost-
Share Accountability Act of 2022.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aaron 
Krupkin.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

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    H.R. 6933 would require the Department of Energy to report 
quarterly to the Congress on the use of the department's 
authority to reduce or eliminate cost-sharing requirements for 
various research, development, and demonstration projects. 
Based on the cost of similar reports, CBO estimates that 
implementing the bill would cost $1 million over the 2022-2027 
period; any spending would be subject to the availability of 
appropriated funds.
    The CBO staff contact for this estimate is Aaron Krupkin. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                     XI. Federal Mandates Statement

    H.R. 6933 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The Committee's oversight findings and recommendations are 
reflected in the body of this report.

      XIII. Statement on General Performance Goals and Objectives

    Pursuant to clause (3)(c)(4) of rule XIII of the Rules of 
the House of Representatives, the goals of H.R. 6933 are to 
facilitate congressional oversight of the Department's use of 
its authority to reduce or eliminate statutory cost-share 
requirements for its research, development, demonstration, and 
commercial application activities. This legislation will 
require the Department to provide reports on its activities 
that will enable Congress to better monitor the use of Federal 
funds and could inform potential future legislation governing 
the Department's research, development, demonstration, and 
commercial application programs.

               XIV. Federal Advisory Committee Statement

    No Federal Advisory Committees are created by H.R. 6933.

                  XV. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 6933 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XVI. Earmark Identification

    Pursuant to clauses 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 6933 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

             XVII. Applicability to the Legislative Branch

    The Committee finds that H.R. 6933 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).

     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

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                       ENERGY POLICY ACT OF 2005




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TITLE IX--RESEARCH AND DEVELOPMENT

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Subtitle I--Research Administration and Operations

           *       *       *       *       *       *       *


SEC. 988. COST SHARING.

  (a) Applicability.--Notwithstanding any other provision of 
law, in carrying out a research, development, demonstration, or 
commercial application program or activity that is initiated 
after the date of enactment of this section, the Secretary 
shall require cost-sharing in accordance with this section.
  (b) Research and Development.--
          (1) In general.--Except as provided in paragraphs 
        (2), (3), and (4) and subsection (f), the Secretary 
        shall require not less than 20 percent of the cost of a 
        research or development activity described in 
        subsection (a) to be provided by a non-Federal source.
          (2) Exclusion.--Paragraph (1) shall not apply to a 
        research or development activity described in 
        subsection (a) that is of a basic or fundamental 
        nature, as determined by the appropriate officer of the 
        Department.
          (3) Reduction.--The Secretary may reduce or eliminate 
        the requirement of paragraph (1) for a research and 
        development activity of an applied nature if the 
        Secretary determines that the reduction is necessary 
        and appropriate.
          (4) Exemption for institutions of higher education 
        and other nonprofit institutions.--
                  (A) In general.--Paragraph (1) shall not 
                apply to a research or development activity 
                performed by an institution of higher education 
                or nonprofit institution (as defined in section 
                4 of the Stevenson-Wydler Technology Innovation 
                Act of 1980 (15 U.S.C. 3703)).
                  (B) Termination date.--The exemption under 
                subparagraph (A) shall apply during the 2-year 
                period beginning on the date of enactment of 
                this paragraph.
  (c) Demonstration and Commercial Application.--
          (1) In general.--Except as provided in paragraph (2) 
        and subsection (f), the Secretary shall require that 
        not less than 50 percent of the cost of a demonstration 
        or commercial application activity described in 
        subsection (a) to be provided by a non-Federal source.
          (2) Reduction of non-federal share.--The Secretary 
        may reduce the non-Federal share required under 
        paragraph (1) if the Secretary determines the reduction 
        to be necessary and appropriate, taking into 
        consideration any technological risk relating to the 
        activity.
  (d) Calculation of Amount.--In calculating the amount of a 
non-Federal contribution under this section, the Secretary--
          (1) may include allowable costs in accordance with 
        the applicable cost principles, including--
                  (A) cash;
                  (B) personnel costs;
                  (C) the value of a service, other resource, 
                or third party in-kind contribution determined 
                in accordance with the applicable circular of 
                the Office of Management and Budget;
                  (D) indirect costs or facilities and 
                administrative costs; or
                  (E) any funds received under the power 
                program of the Tennessee Valley Authority 
                (except to the extent that such funds are made 
                available under an annual appropriation Act); 
                and
          (2) shall not include--
                  (A) revenues or royalties from the 
                prospective operation of an activity beyond the 
                time considered in the award;
                  (B) proceeds from the prospective sale of an 
                asset of an activity; or
                  (C) other appropriated Federal funds.
  (e) Repayment of Federal Share.--The Secretary shall not 
require repayment of the Federal share of a cost-shared 
activity under this section as a condition of making an award.
  (f) Exclusions.--This section shall not apply to--
          (1) a cooperative research and development agreement 
        under the Stevenson-Wydler Technology Innovation Act of 
        1980 (15 U.S.C. 3701 et seq.);
          (2) a fee charged for the use of a Department 
        facility; or
          (3) an award under--
                  (A) the small business innovation research 
                program under section 9 of the Small Business 
                Act (15 U.S.C. 638); or
                  (B) the small business technology transfer 
                program under that section.
  (g) Reporting.--Not later than 120 days after the enactment 
of the Cost-Share Accountability Act of 2022, and at least 
quarterly thereafter, the Secretary shall submit to the 
Committee on Science, Space, and Technology and Committee on 
Appropriations of the House of Representatives and the 
Committee on Energy and Natural Resources and the Committee on 
Appropriations of the Senate, and shall make publicly 
available, a report on the use by the Department during the 
period covered by the report of the authority to reduce or 
eliminate cost-sharing requirements provided by subsections 
(b)(3) or (c)(2).

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