[Senate Report 111-335]
[From the U.S. Government Publishing Office]
Calendar No. 622
111th Congress Report
SENATE
2d Session 111-335
======================================================================
ADVANCED VEHICLE TECHNOLOGY ACT
_______
September 28, 2010.--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 S. 2843]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2843) to provide for a program of
research, development, demonstration, and commercial
application in vehicle technologies at the Department of
Energy, having considered the same, reports favorably thereon
with an amendment and recommends that the bill, as amended, do
pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Advanced Vehicle
Technology Act of 2010''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I--VEHICLE RESEARCH AND DEVELOPMENT
Sec. 101. Program.
Sec. 102. Sensing and communications technologies.
Sec. 103. Manufacturing.
Sec. 104. User testing facilities.
Sec. 105. Reports.
Sec. 106. Innovative Automotive Demonstration Program.
TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES
Sec. 201. Program.
Sec. 202. Class 8 truck and trailer systems demonstration.
Sec. 203. Technology testing and metrics..
Sec. 204. Nonroad systems pilot program.
TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM
Sec. 301 Advanced technology vehicles manufacturing incentive program.
TITLE IV--NATURAL GAS VEHICLES
Sec. 401 Natural gas vehicle research, development, and demonstration.
Sec. 402. Study of increasing natural gas and liquefied petroleum gas
vehicles in Federal fleet.
TITLE V--AUTHORIZATION OF APPROPRIATIONS
Sec. 501. Authorization of appropriations.
Sec. 502. Cost-sharing requirement.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) according to the Energy Information Administration, the
transportation sector accounts for approximately 28 percent of
the United States primary energy demand and greenhouse gas
emissions, and 24 percent of global oil demand;
(2) the United States transportation sector is over 95
percent dependent on petroleum, and over 60 percent of
petroleum demand is met by imported supplies;
(3) United States heavy truck fuel consumption will increase
23 percent by 2030, while overall transportation energy use
will decline by 1 percent;
(4) the domestic automotive and commercial vehicle
manufacturing sectors have increasingly limited resources for
research, development, and engineering of advanced
technologies;
(5) domestic vehicle, engine, and component manufacturers are
playing a more important role in vehicle technology
development, awl should be better integrated into Federal
research efforts;
(6) priorities for vehicle technologies research of the
Department of Energy have shifted drastically in recent years
among diesel hybrids, hydrogen fuel cell vehicles, and plug-in
electric hybrids, with little continuity among the vehicle
technologies;
(7) the integration of vehicle, communication, and
infrastructure technologies has great potential for efficiency
gains through better management of the total transportation
system; and
(8) the Federal Government should balance the role of the
Federal Government in researching longer-term exploratory
concepts and developing nearer-term transformational
technologies for domestic-made vehicles.
(b) Purposes.--The purposes of this Act are--
(1) to reform and reorient the vehicle technologies programs
of the Department of Energy;
(2) to develop and promote the deployment of technologies and
practices that--
(A) improve the fuel efficiency and emissions of all
vehicles produced in the United States; and
(B) reduce vehicle reliance on petroleum-based fuels;
(3) to support domestic research, development, demonstration,
deployment, engineering, and commercial application and
domestic manufacturing of advanced vehicles, engines, and
components;
(4) to enable vehicles to move larger volumes of goods and
more passengers with less energy and emissions;
(5) to develop cost-effective advanced technologies for wide-
scale utilization throughout the passenger, commercial,
government, and transit vehicle sectors;
(6) to allow for greater consumer choice of domestic-made
vehicle technologies and fuels;
(7) to shorten technology development and integration cycles
in the domestic vehicle industry;
(8) to ensure a proper balance and diversity of Federal
investment in domestic-made vehicle technologies;
(9) to promote the integration of intelligent vehicle
technologies with infrastructure-based information and
communications systems and the electrical grid; and
(10) to strengthen partnerships between Federal and State
governmental agencies and the private and academic sectors.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Department.--The term ``Department'' means the Department
of Energy.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
TITLE I--VEHICLE RESEARCH AND DEVELOPMENT
SEC. 101. PROGRAM.
(a) Activities.--In carrying out the Vehicle Technologies Program
of the Department, the Secretary shall conduct basic and applied
research, development, engineering, demonstration, and commercial
application activities on materials, technologies, and processes with
the potential to substantially reduce or eliminate petroleum use by,
and emissions from, passenger and commercial vehicles of the United
States, including activities in the areas of--
(1) hybridization or full electrification of vehicle systems;
(2) batteries, ultracapacitors, and other energy storage
devices;
(3) power electronics;
(4) vehicle, component, and subsystem manufacturing
technologies and processes;
(5) engine efficiency and combustion optimization;
(6) waste heat recovery;
(7) transmission and drivetrains;
(8) hydrogen vehicle technologies, including fuel cells and
internal combustion engines, and hydrogen infrastructure;
(9) aerodynamics, rolling resistance, and accessory power
loads of vehicles and associated equipment;
(10) vehicle weight reduction, including lightweight
materials;
(11) friction and wear reduction;
(12) engine and component durability;
(13) innovative propulsion systems;
(14) advanced boosting systems;
(15) hydraulic hybrid technologies;
(16) engine compatibility with and optimization for a variety
of transportation fuels, including liquid and gaseous fuels;
(17) predictive engineering, modeling, and simulation of
vehicle and transportation systems;
(18) refueling and charging infrastructure for alternative
fueled and electric or plug-in electric hybrid vehicles,
including the unique challenges facing rural areas;
(19) gaseous fuels storage system integration and
optimization;
(20) sensing, communications, and actuation technologies for
vehicle, electrical grid, and infrastructure;
(21) efficient use and recycling of rare earth materials and
reduction of precious metals and other high-cost materials in
vehicles;
(22) aftertreatment technologies;
(23) thermal management of battery systems;
(24) retrofitting advanced vehicle technologies to existing
vehicles;
(25) development of common standards, specifications, and
architectures for both transportation and stationary battery
applications;
(26) development of innovative materials, including
constructive, connective, and reinforcing vehicle components;
and
(27) other research areas, as determined by the Secretary.
(b) Transformational Technology.--The Secretary, in coordination
with the Secretary of Transportation (if appropriate), shall ensure
that the Department continues to support domestic research,
development, engineering, demonstration, and commercial application
activities and maintains competency in mid- to long-term
transformational vehicle technologies with the potential to achieve
deep reductions in petroleum use and emissions, including activities in
the areas of--
(1) hydrogen vehicle technologies, including fuel cells,
internal combustion engines, hydrogen storage, infrastructure,
and activities in hydrogen technology validation and safety
codes and standards;
(2) multiple battery chemistries and novel energy storage
devices, including nonchemical batteries and electromechanical
storage technologies such as hydraulics, flywheels, bipolar
design, and compressed air storage;
(3) communication and connectivity among vehicles,
infrastructure, and the electrical grid;
(4) lightweight vehicles and materials; and
(5) other innovative technologies research and development,
as determined by the Secretary.
(c) Industry Participation.----
(1) In general.--To the maximum extent practicable,
activities under this Act shall be carried out in partnership
or collaboration with----
(A) automotive manufacturers;
(B) heavy commercial and transit vehicle
manufacturers;
(C) qualified plug-in electric vehicle manufacturers;
(D) vehicle and engine equipment and component
manufacturers;
(E) manufacturing equipment manufacturers;
(F) advanced vehicle service providers;
(G) fuel producers and energy suppliers;
(H) electric utilities;
(I) institutions of higher education;
(J) National Laboratories; and
(K) independent research laboratories.
(2) Administration.--In carrying out this Act, the Secretary
shall----
(A) determine whether a wide range of companies that
manufacture or assemble vehicles or components in the
United States are represented in ongoing public private
partnership activities, including firms that have not
traditionally participated in federally sponsored
research and development activities, and if
practicable, partner with such firms that conduct a
substantial portion of relevant research and
development activities in the United States;
(B) leverage the capabilities and resources of, and
formalize partnerships with, industry-led stakeholder
organizations, nonprofit organizations, industry
consortia, and trade associations with expertise in the
research and development of, and education and outreach
activities in, advanced automotive and commercial
vehicle technologies;
(C) develop more efficient processes for transferring
research findings and technologies to industry;
(D) give consideration to conversion of existing or
former vehicle technology development or manufacturing
facilities for the purposes of this Act, and support
public-private partnerships dedicated to overcoming
barriers in commercial application of transformational
vehicle technologies that use such industry-led
facilities;
(E) promote efforts to ensure that technologies
developed under this Act are produced in the United
States; and
(F) establish public-private partnerships dedicated
to overcoming barriers to the commercial application of
transformational vehicle technologies, using existing
industry-led domestic technology development facilities
of entities with demonstrated expertise in successfully
designing and engineering precommercial generations of
such transformational technology.
(d) Interagency and Intraagenecy Coordination.--To the maximum
extent practicable, the Secretary shall coordinate research,
development, engineering, demonstration, and commercial application
activities among----
(1) relevant programs within the Department, including----
(A) the Office of Energy Efficiency and Renewable
Energy;
(B) the Office of Science;
(C) the Office of Electricity Delivery and Energy
Reliability;
(D) the Office of Fossil Energy;
(E) the Advanced Research Projects Agency--Energy;
and
(F) other offices, as determined by the Secretary;
and
(2) relevant technology research and development programs
within the Department of Transportation and other Federal
agencies, as determined by the Secretary.
(e) Coordination and Nonduplication.--In coordinating activities,
the Secretary shall ensure, to the maximum extent practicable, that
activities do not duplicate activities of other programs within the
Department or other relevant research agencies.
(f) Federal Demonstration of Technologies.--The Secretary shall
make information available to procurement programs of Federal agencies
regarding the potential to demonstrate technologies resulting from
activities funded through programs under this Act.
(g) Intergovernmental Coordination.--The Secretary shall seek
opportunities to leverage resources and support initiatives of State
and local governments in developing and promoting advanced vehicle
technologies, manufacturing, and infrastructure.
SEC. 102. SENSING AND COMMUNICATIONS TECHNOLOGIES.
(a) In General.--The Secretary, in coordination with the Secretary
of Transportation and relevant research programs of other Federal
agencies, shall conduct research, development, engineering, and
demonstration activities on connectivity of domestic vehicle and
transportation systems, including on sensing, computation,
communication, actuation, and information technologies that allow for
reduced fuel use, optimized traffic flow, improved freight logistics,
and vehicle electrification, including technologies for--
(1) onboard vehicle, engine, and component sensing and
actuation;
(2) vehicle-to-vehicle sensing and communication;
(3) vehicle-to-infrastructure sensing and communication;
(4) vehicle integration with the electrical grid; and
(5) driver-to-vehicle integration and communication.
(b) Coordination.--The activities carried out under this section
should supplement, and not duplicate, activities under the intelligent
transportation system research program of the Department of
Transportation.
SEC. 103. MANUFACTURING.
The Secretary shall carry out a research, development, engineering,
demonstration, and commercial application program of domestic advanced
vehicle manufacturing technologies and practices, including innovative
processes to--
(1) increase the production rate and decrease the cost of
advanced battery manufacturing;
(2) vary the capability of individual manufacturing
facilities to accommodate different battery chemistries and
configurations;
(3) reduce waste streams, emissions, and energy-intensity of
vehicle, engine, advanced battery, and component manufacturing
processes;
(4) recycle and remanufacture used batteries and other
vehicle components for reuse in vehicles or stationary
applications;
(5) produce cost-effective lightweight materials, such as
advanced metal alloys, polymeric composites, and carbon fiber;
(6) produce lightweight high pressure storage systems for
gaseous fuels;
(7) design and manufacture purpose-built hydrogen and fuel
cell vehicles and components;
(8) improve the calendar life and cycle life of advanced
batteries; and
(9) produce permanent magnets for advanced vehicles.
SEC. 104. USER TESTING FACILITIES.
Activities under this Act may include domestic construction,
expansion, or modification of new and existing vehicle, engine, and
component research and testing facilities for--
(1) testing or simulating interoperability of a variety of
vehicle components and systems;
(2) subjecting whole or partial vehicle platforms to fully
representative duty cycles and operating conditions;
(3) developing and demonstrating a range of chemistries and
configurations for advanced vehicle battery manufacturing; and
(4) developing and demonstrating test cycles for new and
alternative fuels and other advanced vehicle technologies.
SEC. 105. REPORTS.
(a) Technologies--Not later than 18 months after the date of
enactment of this Act and annually thereafter through calendar year
2015, the Secretary shall submit to Congress a report regarding the
technologies developed as a result of the activities authorized by this
title, with a particular emphasis on--
(1) whether the technologies were successfully adopted for
commercial applications; and
(2) if so, whether those technologies are manufactured in the
United States.
(b) Activities--At the end of each fiscal year the Secretary shall
submit to the relevant Congressional committees of jurisdiction an
annual report on activities undertaken during the fiscal year under
this title, including--
(1) active industry participants;
(2) efforts to recruit new participants;
(3) progress of the program in meeting goals and timelines;
and
(4) a strategic plan for funding of activities across
agencies.
SEC. 106. INNOVATIVE AUTOMOTIVE DEMONSTRATION PROGRAM.
(a) In General--The Secretary shall establish an Innovative
Automotive Demonstration Program, within the Vehicle Technologies
Program, to encourage the introduction of new domestic-made advanced
technology vehicles into the marketplace that are designed in their
entirety to achieve very high energy efficiency but still provide the
capabilities required by consumers in the United States.
(b) Administration.--The Program established under this section
shall encourage--
(1) the introduction of new light duty vehicles into the
marketplace that are capable of achieving energy efficiencies
significantly greater than required under applicable and
pending corporate average fuel economy standards; and
(2) the use of materials and manufacturing techniques that
minimize environmental impacts.
(c) Awards.--Awards under this section shall be made on a
competitive basis for demonstration of domestic-made vehicles that--
(1) are primarily for use on public streets, roads, and
highways and are not manufactured primarily for off-road use;
(2) meet all Federal safety requirements;
(3) achieve at least 70 miles per gallon or the equivalent on
drive cycle of the Environmental Protection Agency;
(4) provide vehicle performance that is judged acceptable to
consumers in the United States;
(5) be affordable to consumers in the United States;
(6) use materials and manufacturing processes that minimize
environmental impacts;
(7) meet all Federal and State emission requirements; and
(8) provide new high technology engineering and production
employment opportunities.
TITLE II--MEDIUM AND HEAVY DUTY COMMERCIAL AND TRANSIT VEHICLES
SEC. 201. PROGRAM.
(a) In General.--In carrying out the 21st Century Truck Partnership
of the Department, the Secretary, in partnership with relevant research
and development programs in other Federal agencies and a range of
appropriate industry stakeholders, shall conduct cooperative research,
development, demonstration, and commercial application activities on
advanced technologies for medium- to heavy-duty commercial,
recreational, and transit vehicles, including activities in the areas
of--
(1) engine efficiency and combustion research;
(2) onboard storage technologies for compressed and liquefied
natural gas;
(3) development and integration of engine technologies
designed for natural gas operation of a variety of vehicle
platforms;
(4) waste heat recovery and conversion;
(5) improved aerodynamics and tire rolling resistance;
(6) energy and space-efficient emissions control systems;
(7) heavy hybrid, hybrid hydraulic, plug-in hybrid, and
electric platforms, and energy storage technologies;
(8) drivetrain optimization;
(9) friction and wear reduction;
(10) engine idle and parasitic energy loss reduction;
(11) electrification of accessory loads;
(12) onboard sensing and communications technologies;
(13) advanced lightweight materials and vehicle designs;
(14) increasing load capacity per vehicle;
(15) thermal management of battery systems;
(16) recharging infrastructure;
(17) complete vehicle modeling and simulation;
(18) hydrogen vehicle technologies, including fuel cells and
internal combustion engines, and hydrogen infrastructure;
(19) retrofitting advanced technologies onto existing truck
fleets; and
(20) integration of those and other advanced systems onto a
single truck and trailer platform.
(b) Director.--
(1) In general.--The Secretary shall appoint a full-time
Director to coordinate research, development, demonstration,
and commercial application activities in medium- to heavy-duty
commercial, recreational, and transit vehicle technologies.
(2) Duties.--The Director shall--
(A) improve coordination and develop consensus
between government agency and industry partners, and
propose new processes for program management and
priority setting to better align activities and budgets
among partners;
(B) regularly conduct workshops, site visits,
demonstrations, conferences, investor forums, and other
events in which information and research findings are
shared among program participants and interested
stakeholders;
(C) develop a budget for activities of the Department
regarding the interagency program established under
this title, and provide consultation and guidance on
vehicle technology funding priorities across agencies;
(D) determine a process for reviewing program
technical goals, targets, and timetables and, if
applicable, aided by life-cycle impact and cost
analysis, propose revisions or elimination based on
program progress, available funding, and rate of
technology adoption;
(E) evaluate ongoing activities of the program and
recommend project modifications, including the
termination of projects, if applicable; and
(F) other responsibilities, as determined by the
Secretary, in consultation with interagency and
industry partners.
(d) Reports.--At the end of each fiscal year, the Secretary shall
submit to Congress an annual report that describes activities
undertaken during the fiscal year under this title, including--
(1) active industry participants;
(2) progress of the program in meeting goals and timelines;
and
(3) a strategic plan for funding of activities across
agencies.
SEC. 202. CLASS 8 TRUCK AND TRAILER SYSTEMS DEMONSTRATION.
(a) In General.--The Secretary shall conduct a competitive grant
program to demonstrate the integration of multiple advanced
technologies on Class 8 truck and trailer platforms with a goal of
improving overall freight efficiency, as measured in tons and volume of
freight hauled or other work performance-based metrics, by 50 percent,
through a combination of technologies described in section 201(a).
(b) Applicant Teams. Applicant teams may be comprised of truck and
trailer manufacturers, engine and component manufacturers, fleet
customers, information and communications technology manufacturers and
providers, researchers of institutions of higher education, and other
applicants, as appropriate, for the development and demonstration of
integrated Class 8 truck and trailer systems.
SEC. 203. TECHNOLOGY TESTING AND METRICS.
The Secretary, in coordination with the partners of the 21st
Century Truck Partnership of the Department--
(1) shall develop standard testing procedures and
technologies for evaluating the performance of advanced heavy
vehicle technologies under a range of representative duty
cycles and operating conditions, including heavy hybrid
propulsion systems;
(2) shall evaluate heavy vehicle performance using work
performance-based metrics other than metrics based on miles per
gallon, including--
(A) metrics based on units of volume and weight
transported for freight applications; and
(B) appropriate metrics based on performance on
nonroad systems; and
(3) may construct heavy duty truck and bus testing
facilities.
SEC. 204. NONROAD SYSTEMS PILOT PROGRAM.
(a) In General.--The Secretary shall carry out a pilot program of
research, development, demonstration, and commercial applications of
technologies to improve total machine or system efficiency for nonroad
mobile equipment, including agricultural and construction equipment.
(b) Information Transfer.--In carrying out tins section, the
Secretary shall seek opportunities to transfer relevant research
findings and technologies between the nonroad and on-highway equipment
and vehicle sectors.
TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM
SEC. 301. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
Section 136 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17013) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (A)
through (C) as clauses (i) through (iii),
respectively, and indenting appropriately;
(ii) in the matter preceding clause (i) (as
redesignated by clause (i)), by striking
``means an ultra efficient vehicle or a light
duty vehicle that meets--'' and inserting the
following:
``means--
``(A) an ultra efficient vehicle or a light duty
vehicle that meets--'';
(iii) in clause (iii) (as redesignated by
clause (i)), by striking the period at the end
and inserting ``; or''; and
(iv) by adding at the end the following:
``(B) a vehicle such as a medium-duty or heavy-duty
work truck, bus, or rail transit vehicle that--
``(i) is used on a public street, road,
highway, or transitway;
``(ii) meets each applicable emissions
standard that is established as of the date of
the application; and
``(iii) as determined by the Secretary, the
deployment of which will reduce consumption of
motor fuels by 25 percent or more, as compared
to current surface transportation technologies
that perform a similar function, unless the
Secretary determines that--
``(I) the percentage is not
achievable for a vehicle type or class;
and
``(II) an alternative percentage for
that vehicle type or class will result
in substantial reductions in motor fuel
consumption.'';
(B) in paragraph (3)(B)--
(i) by striking ``equipment and'' and
inserting ``equipment,''; and
(ii) by inserting ``, and manufacturing
process equipment'' after ``suppliers''; and
(C) by striking paragraph (4) and inserting the
following:
``(4) Qualifying components.--The term `qualifring
components' means components, systems, or groups of subsystems
that the Secretary determines to--
``(A) be designed for improving fuel economy of
advanced technology vehicles; and
``(B) contribute measurably to the overall fuel
economy of the advanced technology vehicles.'';
(2) in subsection (b), in the matter preceding paragraph (1),
by striking ``to automobile'' and inserting ``to advanced
technology vehicle'';
(3) in subsection (d)(1), in the first sentence, by striking
``a total of not more than $25,000,000,000 in'';
(4) in subsection (h)--
(A) in the subsection heading, by striking
``Automobile'' and inserting ``Advanced Technology
Vehicle''; and
(B) in paragraph (1)(B), by striking ``automobiles''
each place it appears and inserting ``advanced
technology vehicles''; and
(5) in subsection (i), by striking ``2012'' and inserting
``2015''.
TITLE IV--NATURAL GAS VEHICLES
SEC. 401. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION
PROJECTS.
(a) In General.--The Secretary, in coordination with the
Administrator, shall conduct a program of natural gas vehicle research,
development, and demonstration.
(b) Purposes.--The purposes of the program conducted under this
section are to focus on--
(1) the continued improvement and development of new,
cleaner, more efficient light-duty, medium-duty, and heavy-duty
natural gas and vehicle engines;
(2) the integration of those engines into light-duty, medium-
duty, and heavy-duty natural gas vehicles for onroad and
offroad applications;
(3) the expansion of product availability by assisting
manufacturers with the certification of the engines or vehicles
described in paragraph (1) or (2) to comply with Federal or
California certification requirements and in-use emission
standards;
(4) the demonstration and proper operation and use of the
vehicles described in paragraph (2) under all operating
conditions;
(5) the development and improvement of nationally recognized
codes and standards for the continued safe operation of
vehicles described in paragraph (2) and the components of the
vehicles;
(6) the improvement in the reliability and efficiency of
natural gas fueling station infrastructure;
(7) the certification of natural gas fueling station
infrastructure to nationally recognized and industry safety
standards;
(8) the improvement in the reliability and efficiency of
onboard natural gas fuel storage systems;
(9) the development of new natural gas fuel storage
materials;
(10) the certification of onboard natural gas fuel storage
systems to nationally recognized and industry safety standards;
and
(11) the use of natural gas engines in hybrid vehicles.
(c) Certification of Aftermarket Conversion Systems.--
(1) In general.--The Secretary shall coordinate with the
Administrator on issues relating to streamlining the
certification of natural gas aftermarket conversion systems to
comply with appropriate Federal certification requirements and
in-use emission standards.
(2) Streamlined certification.--For purposes of paragraph
(1), streamlined certification shall include providing
aftermarket conversion system manufacturers the option to
continue to sell and install systems on engines and test groups
for which the manufacturers have previously received a
certifcate of conformity without having to request a new
certificate in future years.
(d) Cooperation and Coordination With Industry.--In developing and
carrying out the program under this section, the Secretary shall
coordinate with the natural gas vehicle industry to ensure, to the
maximum extent practicable, cooperation between the public and the
private sector.
(e) Administration.--The program under this section shall be
conducted in accordance with sections 3001 and 3002 of the Energy
Policy Act of 1992 (42 U.S.C. 13541, 13542).
(f) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall submit to the appropriate committees of
Congress a report on the implementation of this section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to early out this section $30,000,000 for
each of fiscal years 2011 through 2015.
SEC. 402. STUDY OF INCREASING NATURAL GAS AND LIQUEFIED PETROLEUM GAS
VEHICLES IN FEDERAL FLEET.
(a) In General--The Administrator of General Services, in
consultation with the Administrator and the Secretary, shall conduct a
study of the means by which the Federal fleet could increase the number
of light-, medium-, and heavy-duty natural gas and liquefied petroleum
gas vehicles in the fleet.
(b) Components.--In conducting the study, the Administrator of
General Services shall--
(1) take into consideration Executive Order 13514 (74 Fed.
Reg. 52117; relating to Federal leadership in environmental,
energy, and economic performance) requiring agencies to meet a
30-percent reduction in vehicle fleet petroleum use by 2020;
(2) assess--
(A) the barriers to increasing the number of natural
gas and liquefied petroleum gas vehicles in the Federal
fleet;
(B) the potential for maximizing the use of natural
gas and liquefied petroleum gas vehicles in the fleet;
(C) the expected reductions in petroleum use and
greenhouse gas emissions as part of the potential
impacts of increasing natural gas and liquefied
petroleum in the fleet; and
(D) the lifecycle costs involved in fleet
conversions, including the cost savings from reduced
fuel consumption;
(3) provide a separate analysis of the potential costs of
installing the specific fueling infrastructure required to
increase natural gas and liquefied petroleum gas in the fleet;
and
(4) include feasibility assessments for increasing the number
of light-, medium-, and heavy-duty natural gas and liquefied
petroleum gas vehicles in the fleet over a base period of 10
years and accelerated periods of 3 and 5 years.
(c) Report.--Not later than 180 days after the date of enactment of
this Act, the Administrator of General Services shall submit to the
appropriate committees of Congress a report on the results of the study
conducted under this section.
TITLE V--AUTHORIZATION OF APPROPRIATIONS
SEC. 501. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary such sums
as are necessary to carry out this Act.
SEC. 502. COST-SHARING REQUIREMENT.
The activities carried out under this Act shall be subject to the
cost-sharing requirements of section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352).
Purpose
The purpose of S. 2843 is to provide for a program of
research, development, demonstration, and commercial
application in vehicle technologies at the Department of
Energy.
Background and Need
Over the last two decades, federal research priorities in
vehicle technology have shifted between passenger and heavy
duty vehicles, as well as diesel-hybrids, hydrogen-fueled, and
battery-powered drive systems. The variation in priority and
funding may be one reason for unsteady progress in advancing
any one technology. This illustrates the need for a
comprehensive strategy and consistent funding in a broad range
of areas, from near-commercial technologies to exploratory
research on a variety of systems, and across vehicle size
classes. Striking the appropriate research balance and
strengthening the federal commitment in this area is especially
critical at a time when both the automotive and commercial
trucking industries have limited resources for increasingly
expensive research and development. S. 2843 lays out a
comprehensive research, development, demonstration, and
commercial application program, including many subprograms to
support advancing U.S. competitiveness in advanced vehicle
technologies.
Legislative History
S. 2843 was introduced by Senator Stabenow on December 7,
2009. The Subcommittee on Energy held a legislative hearing on
the House companion bill, H.R. 3246, on December 8, 2009 (S.
Hrg. 111-330). The Committee on Energy and Natural Resources
considered S. 2843 and ordered it reported favorably with an
amendment in the nature of a substitute on July 21, 2010.
Committee Recommendation and Tabulation of Votes
The Committee on Energy and Natural Resources, in an open
business session on July 21, 2010, by a roll call vote of a
quorum present, recommends that the Senate pass S. 2843, if
amended as described herein.
The rollcall vote on reporting the measure was 13 yeas, 10
nays, as follows:
YEAS NAYS
Mr. Bingaman Ms. Murkowski
Mr. Dorgan Mr. Burr
Mr. Wyden Mr. Barrasso
Mr. Johnson* Mr. Brownback
Ms. Landrieu* Mr. Risch
Ms. Cantwell* Mr. McCain*
Mr. Menendez* Mr. Bennett
Mrs. Lincoln* Mr. Bunning*
Mr. Sanders Mr. Sessions*
Mr. Bayh Mr. Corker*
Ms. Stabenow
Mr. Udall
Ms. Shaheen
*Indicates vote by proxy.
Committee Amendment
During its consideration of S. 2843, the Committee adopted
an amendment in the nature of a substitute. The amendment adds
a new title III, which extends and expands eligibility for the
Advanced Technology Vehicles Manufacturing Incentive Program
established under section 136 of the Energy Independence and
Security Act of 2007, and a new title IV, which directs the
Secretary of Energy to conduct a program of natural gas vehicle
research, development, and demonstration, and directs the
General Services Administration to conduct a study of the means
by which the Federal government could increase the number of
light, medium, and heavy-duty natural gas and liquefied
petroleum gas vehicles in the fleet. In addition, the
substitute amendment subjects activities carried out under the
bill to the cost-sharing requirements of section 988 of the
Energy Policy Act of 2005, and makes clear that the bill is
intended to `` reform and re-orient'' the Department's existing
vehicle programs. The amendment is explained in detail in the
section-by-section analysis below.
Section-by-Section Analysis
Section 1 provides a short title and table of contents.
Section 2(a) states the findings and purpose of the
legislation.
Subsection (b) states the purposes of the legislation.
Section 3 defines teams used in the legislation.
TITLE I--VEHICLE RESEARCH AND DEVELOPMENT
Section 101(a) directs the Secretary of Energy to conduct
research, development, demonstration, and commercial
application activities on advanced vehicle materials,
technologies, and processes in the areas of: [hybridization and
electrification; batteries and energy storage devices; power
electronics; manufacturing technologies; engine efficiency and
combustion; waste heat recovery; transmission and drivetrains;
hydrogen technologies; aerodynamics, rolling resistance, and
accessory power loads; weight reduction; friction and wear
reduction; durability; innovative propulsion systems;
compatibility with non-petroleum fuels; modeling and
simulation; refueling and charging infrastructure; sensing and
communications; rare earth and precious metals; aftertreatment;
battery thermal management; common standards and
specifications; and other areas as determined by the
Secretary].
Subsection (b) directs the Secretary to maintain programs
to retain competency in mid-to-long term transformational
vehicle technologies such as hydrogen, multiple battery
chemistries, novel energy storage devices, vehicle
connectivity, lightweight materials, and other areas as
determined by the Secretary.
Subsection (c) specifies that activities should be carried
out in partnership or collaboration with a diverse set of non-
governmental, private and academic entities, including those
which have not previously participated in government-sponsored
research and development activities. The Secretary is required
to leverage the resources of and support other organizations
with expertise in vehicle technology development and develop
streamlined technology transfer mechanisms. The Secretary
should also seek to utilize existing or former manufacturing
facilities, promote efforts to ensure technologies are produced
in the U.S., and establish public-private partnerships for that
purpose.
Subsection (d) directs the Secretary to maximize
coordination of activities between relevant Departmental
programs and offices, and other federal agencies.
Subsection (e) directs the Secretary to avoid duplication
of activities of other programs within the Federal government
to the maximum extent practicable.
Subsection (f) directs the Secretary inform procurement
programs of Federal agencies of the potential for demonstrating
technologies funded by this Act.
Subsection (g) directs the Secretary to support State and
local government initiatives in advanced vehicle technologies,
development, manufacturing, and infrastructure.
Section 102 creates a research, development, demonstration,
and commercial application program, carried out in coordination
with the Secretary of Transportation, on sensing and
communications technologies in vehicles and infrastructure that
will facilitate reduced fuel use, optimized traffic flow,
improved freight logistics, and vehicle electrification.
Section 103 creates a research, development, demonstration,
and commercial application program in manufacturing processes
to produce advanced vehicle technologies and components.
Section 104 authorizes the construction, expansion, or
modification of user testing facilities for advanced vehicles
and components.
Section 105 specifies the content of required annual
reports on the activities undertaken in programs authorized by
this Act, including progress on domestic commercialization and
the extent of industry participation.
Section 106 establishes an innovative automotive
demonstration program with awards to private entities that
bring to market light duty vehicles of significantly better
fuel efficiency than is contemplated by federal fuel economy
standards.
TITLE II--MEDIUM AND HEAVY DUTY VEHICLES
Section 201(a) directs the Secretary to carry out a
collaborative commercial and transit vehicle technology
development program in partnership with a variety of industry
and federal agency partners, including activities in the areas
of: [engine efficiency; combustion; waste heat recovery;
aerodynamics; rolling resistance; hybridization and
electrification; drivetrains; friction and wear reduction;
engine idle and parasitic energy loss; sensing and
communications; lightweight materials; battery thermal
management; recharging infrastructure; modeling and simulation;
retrofitting of existing fleets with new technologies; and
integration of multiple technologies onto a single platform].
Subsection (b) directs the Secretary to appoint a full-time
director for medium-to-heavy duty truck technology development
programs, with responsibilities to include: improving
coordination between agencies and program partners; convening
of events for sharing information and research findings;
developing a program budget and consulting on budget priorities
across agency partners; determining a process for reviewing and
revising program goals, targets and timetables; and, evaluating
program activities and recommending modifications.
Subsection (c) directs the Secretary to submit to Congress
an annual report describing program activities, partners, and
progress, and proposing a strategic plan for the interagency
partnership.
Section 202 creates a competitive grant program to
demonstrate the integration of multiple advanced technologies
on truck and trailer platforms that facilitate improved overall
freight efficiency.
Section 203 directs the Secretary, in coordination with
interagency partners, to develop standard testing procedures
and metrics that represent the unique task-specific operating
conditions and duty cycles for heavy-duty vehicles, and
authorizes the Secretary to construct heavy duty truck and bus
testing facilities.
Section 204 directs the Secretary to undertake a pilot
program in technology development for non-road equipment (such
as construction, agricultural, or industrial mobile equipment)
and to seek opportunities to transfer relevant research
findings between non-road and on-highway sectors.
TITLE III--ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM
Section 301 amends section 136 of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17013).
Paragraph (1)(A) amends section 136 to allow lending to
manufacturers of medium or heavy duty trucks, buses, or rail
transit vehicles when the Secretary determines that the
deployment of such vehicles will result in a reduction in
consumption of motor fuels of 25 percent compared to
conventional technologies, or, in cases where such amount is
deemed not achievable, a lesser but still substantial
reduction.
Paragraph (1)(B) clarifies that loans may be made for
manufacturing process equipment for producing qualifying
vehicles and components.
Paragraph (1)(C) modifies the definition of ``qualifying
components'' to clarify that components that are designed to
improve the fuel economy performance of a qualifying vehicle
and contribute measurably to the overall fuel economy of the
vehicle qualify for lending, even if the component itself does
not yield sufficient fuel economy gain for a given vehicle to
qualify as an advanced technology vehicle.
Paragraph (2) makes a conforming amendment.
Paragraph (3) strikes the program's previously authorized
lending cap of $25,000,000,000.
Paragraph (4) makes a conforming amendment.
Paragraph (5) extends the program's authorization date from
2012 through 2015.
TITLE IV--NATURAL GAS VEHICLES
Section 401(a) directs the Secretary to coordinate with the
Administrator of the Environmental Protection Agency to conduct
a natural gas vehicle research, development, and demonstration
program.
Subsection (b) specifies the purposes of the program
[including the development of more efficient natural gas and
vehicles engines; the integration of those engines in off and
on road vehicles; assisting manufacturers in the certification
of both the engines and vehicles as compliant with state and
federal emissions requirements, including demonstration of
proper use; the development of nationally recognized codes
relating to safe operation of natural gas engines and vehicles;
the improvement of both reliability and safety of natural gas
fueling stations and onboard storage systems; and the use of
natural gas engines in hybrid vehicles].
Subsection (c) directs the Secretary to work with the
Administrator to streamline the certification system for
natural gas aftermarket conversion systems and ensure their
compliance with Federal standards.
Subsection (d) directs the Secretary to coordinate with the
natural gas vehicle industry while developing and carrying out
the program.
Subsection (e) directs the program created by this section
to be conducted in accordance with sections 3001 and 3002 of
the Energy Policy Act of 1992 (42 U.S.C. 13541,13542).
Subsection (f) directs the Secretary to submit a report on
the implementation of the program to the appropriate
Congressional committees not later than 2 years after
enactment.
Subsection (g) authorizes the appropriation of $30,000,000
for each of fiscal years 2011 through 2015 to be used by the
Secretary to carry out the program.
Section 402(a) directs the Administrator of General
Services, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, to
conduct a study on increasing the number of natural gas and
liquefied petroleum gas vehicles in the federal fleet.
Subsection (b) directs that the study include consideration
of Executive Order 13514 (74 Fed. Reg. 52117), which requires
federal fleet petroleum use to be reduced by 30 percent by
2020, and also assess the various barriers, feasibility, as
well as environmental and cost benefits of increased use of
such vehicles.
Subsection (c) directs the Administrator of General
Services to submit the report not later than 180 days after the
date of enactment to the appropriate Congressional committees.
TITLE V--AUTHORIZATION OF APPROPRIATIONS
Section 501 authorizes the Secretary to appropriate the
necessary sums to carry out this Act.
Section 502 subjects activities carried out under S. 2843
to the cost-sharing requirements covered under section 988 of
the Energy Policy Act of 2005 (42 U.S.C. 16352).
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 2843--Advanced Vehicle Technology Act of 2010
Summary: S. 2843 would direct the Secretary of Energy to
expand existing activities aimed at developing alternative
vehicles with the potential to significantly reduce or
eliminate petroleum use and carbon emissions. Assuming
appropriation of the necessary amounts, CBO estimates that
implementing S. 2843 would cost about $1.5 billion over the
2011-2015 period. Enacting S. 2843 would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply.
S. 2843 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 S. 2843 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level................................ 425 428 435 444 454 2,186
Estimated Outlays............................................ 130 259 320 362 399 1,470
----------------------------------------------------------------------------------------------------------------
Basis of estimate: S. 2843 would direct the Secretary of
Energy to carry out, in collaboration with vehicle
manufacturers and other nonfederal entities, activities to
promote the development of vehicles with the potential to
significantly reduce petroleum use and carbon emissions. The
bill would authorize the appropriation of whatever amounts are
necessary to expand existing research and development
activities of the Department of Energy (DOE) related to
alternative vehicles. In addition, the bill would require the
agency to establish new initiatives, particularly related to
medium- and heavy-duty and transit vehicles.
S. 2843 does not specify particular targets or goals for
DOE to achieve related to alternative vehicles. Research and
development activities inherently involve trial and error, and
the pace of incremental progress is directly related to the
variety of experiments attempted and other factors. For this
estimate, CBO assumes that the agency would increase its level
of effort by expanding existing programs, launching new
initiatives, and increasing the number of technologies tested
in order to achieve appreciable progress in research areas
addressed by S. 2843. Based on information from the agency, CBO
estimates that realizing recognizable gains from such efforts
would require additional appropriations of $425 million in
2011. (According to DOE, funding for activities addressed by
the bill totaled about $300 million in 2010.) That estimate for
2011 includes:
$200 million to expand general research and
development efforts related to alternative passenger
and light-duty commercial vehicles;
$130 million to expand and establish
research and development related to alternative medium-
and heavy-duty commercial vehicles and transit
vehicles;
$40 million to improve the energy efficiency
of manufacturing processes related to alternative
vehicles;
$30 million to expand programs to develop
vehicle sensing and communication technologies;
$15 million for vehicle testing facilities;
and
$10 million for various other activities and
reports.
Assuming that future annual appropriations would remain at
that 2011 level, adjusted for anticipated inflation, CBO
estimates that fully funding S. 2843 would require additional
appropriations totaling $2.2 billion over the 2011-2015 period.
(According to DOE, that amount is equivalent to the total
amount of funding for activities related to alternative
vehicles that has been provided over the past 10 years.)
Resulting outlays over that period would total about $1.5
billion, with $0.7 billion of additional spending occurring in
later years. CBO expects DOE would use those amounts to fund a
wider variety of research activities aimed at achieving
technical milestones. CBO estimates that significantly
accelerating the time frame in which new technologies could
become market ready would require even larger increases in
funding.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 2843
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Megan Carroll; Impact
on State, Local, and Tribal Governments: Ryan Miller; Impact on
the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 2843.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional regulatory paperwork would
result from the enactment of S. 2843, as ordered reported.
Congressionally Directed Spending
S. 2843, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Department of Energy at the
December 8, 2009, Subcommittee hearing on H.R. 3246, the House
companion bill to S. 2843, follows:
Statement of Dr. Kristina M. Johnson, Under Secretary, Department of
Energy
Madam Chairman, Ranking Member Risch, and Members of the
Subcommittee, thank you for the opportunity to appear before
you today to discuss several draft energy bills. We deeply
appreciate your interest in the views of the Department of
Energy (The Department) on these bills. Over many years and
many Administrations, the Department has enjoyed an open and
productive relationship with this Committee, and those of us
serving under President Obama certainly want to continue and
strengthen that partnership.
In recent years, Congress has made a very substantial and
positive investment in clean energy through the enactment of
the Energy Policy Act of 2005 (P.L. 109-58), the Energy
Independence and Security Act of 2007 (EISA)(P.L. 110-140), and
the clean energy portions of the American Recovery and
Reinvestment Act (P.L. 111-5).
This year, the Committee has proposed further investment
and we thank you for all your hard work in reporting the
American Clean Energy Leadership Act (S. 1462). As President
Obama said while dedicating a new solar plant in Central
Florida, ``At this moment, there is something big happening in
America when it comes to creating a clean energy economy. * * *
And I have often said that the creation of such an economy is
going to require nothing less than the sustained effort of an
entire nation--an all-hands-on-deck approach similar to the
mobilization that preceded World War II or the Apollo
Project.''\1\
---------------------------------------------------------------------------
\1\From ``Remarks by the President on Recovery Act Funding for
Smart Grid Technology,'' Press release. October 27, 2009. http://
www.whitehouse.govithe-press-office/remarks-president-recovery-act-
funding-smart-grid-technology.
---------------------------------------------------------------------------
The American Recovery and Reinvestment Act 2009 (The
Recovery Act) alone provided the Department with $36.7B in
appropriations--$32.7 billion in grant and contract authority,
$4 billion in credit subsidy for loan guarantees, plus $6.5
billion in borrowing authority for the Power Marketing
Administrations. These funds will support some $100 billion in
clean energy and environmental clean up projects when leverage
and cost share are included, creating hundreds of thousands of
jobs and providing a meaningful down payment on the nation's
energy and environmental future.\2\
---------------------------------------------------------------------------
\2\The Department has been funded at $36.7 billion in Recovery Act
dollars, after $2 billion of the original $38.7 billion was redirected
to the Cash for Clunkers program.
---------------------------------------------------------------------------
For this hearing, I would like to offer the Department's
views on nine proposed bills, as the Subcommittee has asked.
These bills are: H.R. 957, H.R. 2729, H.R. 3165, H.R. 3236,
H.R. 3585, S. 737, S. 1617, S. 2773, and S. 2744. I will
address each bill in order of introduction starting with the
House bills, except the two wind bills, which I will address
together.
h.r. 957--green energy education act
Background.--A cornerstone of The Department's mission is
to create an energy-literate generation of skilled workers,
scientists, and innovators who can accelerate the transition to
a clean energy economy and ensure U.S. global competitiveness.
The Administration is deeply committed to promoting the
creation of green jobs.
While the Department appreciates H.R. 957's focus on
building technologies, we would like to impress upon the
Committee that a general workforce deficiency is growing across
the energy sector. The rapid deployment of new energy
technologies, coupled with the fact that 40 to 60 percent of
energy utilities' skilled workers and engineers are eligible to
retire by 2012\3\ reinforces the need for a broad approach to
address the green job development and training challenge.
---------------------------------------------------------------------------
\3\Center for Energy Workforce Demand 2007 Report: Gaps in Energy
Workforce Pipeline.
---------------------------------------------------------------------------
To this end, the Department works closely with the National
Science Foundation (NSF) in a number of areas to strengthen
scientific educational programs at the technical,
undergraduate, and graduate levels. These projects are aimed at
creating a pipeline beginning at the K-12 level and extending
through the post-graduate level to ensure the ongoing
development of a workforce with the skills and capabilities to
create and scale-up innovative energy technologies and improve
processes over the long-term. Further, the Department is
already closely coordinating with NSF on education, green jobs
training, and workforce development. The Department recognizes
the importance of leveraging NSF resources, and is already
taking proactive steps to solidify a stronger working
relationship with our colleagues.
H.R. 957 would facilitate stronger collaboration between
the Department and the National Science Foundation. As written,
the legislation would authorize The Department to fund NSF's
flagship interdisciplinary training program (IGERT) to educate
architects and engineers to collaborate on high performance
building technologies and practices.
H.R. 957 assigns priority funding for applications
encouraging partnerships between architectural and engineering
schools. These fields are inextricably intertwined, and can
advance energy efficiency in the design and construction of
high performance buildings.
By supporting multidisciplinary graduate education and
curriculum development activities, H.R. 957 will advance the
Department's broad energy technology development mission. The
bill recognizes the need to produce the next generation of
engineers and architects who can work together from design
concept to building operation to integrate energy efficiency
and renewable energy more fully into the clean, competitive
economy of the future.
We would note here that the Department is already
undertaking efforts in creating or funding green job training
programs through existing authorities.
Through the Recovery Act, the Department is funding
approximately $140 million in training and technical assistance
to develop standardized training curricula for residential
energy workers, expand the number of weatherization training
centers, and to create a national weatherization worker
certification framework.
To serve the commercial building sector, the Department's
Building Technologies Program has issued a Funding Opportunity
Announcement (FOA) to support the development of training
programs for building technicians, operators, energy auditors,
and others responsible for building and operating high
performance commercial buildings. These programs offer an
opportunity to demonstrate how partnerships with the Department
of Labor's public workforce system, labor management
partnerships, education institutions such as community
colleges, and community organizations can meet the workforce
needs of the commercial building sector. The Department of
Energy estimates that approximately $7.5 million will be
available for multiple awards under this FOA.
Utilities, colleges, universities, labor organizations, and
trade associations, will be able to apply for over $100 million
in grants issued through a FOA to improve smart grid technology
education and implementation, as well as funding programs and
curricula to train or retrain workers in the electric power
sector.
Recommendations.--The Department is committed to achieving
effective legislation to train and educate the new energy
economy work force. The Department backs a coordinated,
interagency approach and a balanced investment in education and
training opportunities from kindergarten to adult job training,
beyond just buildings. Although a good start, H.R. 957 could be
improved to more fully address the larger issue of energy
education, green jobs creation, and workforce training. I look
forward to working with the Committee to strengthen this
legislation.
h.r. 2729--national environmental research parks
Background.--The Department's predecessor, the Atomic
Energy Commission, established the first environmental research
park in 1972 at the Savannah River Site in South Carolina in
response to recommendations from the scientific community,
other Federal agencies, and Congress. Between 1972 and 1992 six
additional research parks were designated on The Department
sites.
The research parks, located on Department-owned land,
represent six major eco-regions across the U.S. and provide
research opportunities on natural ecosystems as well as on the
environmental transport, cycling, and fate of radionuclides and
other contaminants resulting from nuclear weapon development
and testing. While the Department-sponsored researchers utilize
the research parks to conduct high-priority mission relevant
research, research park use is dominated by researchers
sponsored by other Federal agencies including the National
Science Foundation, the Department of Agriculture, Geological
Survey, and the Department of Defense. This is due in large
part to the attractiveness of these areas for general
ecological-type research beyond the scope of the Department.
Currently, stewardship of each research park is the
responsibility of its respective laboratory management and
operating contractor, with oversight by the managing Department
program office.
H.R. 2729 formally institutionalizes existing research
parks by directing the Secretary to designate six National
Environmental Research Parks as protected outdoor research
reserves for the purposes of conducting long-term environmental
research on the impacts of human activities on the natural
environment.
The bill authorizes $30 million annually--$5 million for
each of the National Environmental Research Parks--for the
Department's Office of Science to carry out eco-research and
education activities.
As a threshold matter, much of the research contemplated by
this bill is already being performed. This legislation may also
have a few unintended consequences.
Any official designation of park lands as
``protected sites'' could impede the parks'' future use for
mission priority activities and could restrict the Department's
current authority at the proposed sites.
While the research parks are well-suited for
conducting the research proposed by the bill, much of this
research is outside the scope of the Department's mission and
core competencies. An example would be H.R. 2729's proposed
research regarding the general ecology of the site and region
in addition to population biology and ecology. Such research
should continue to be supported by other, more appropriate
Federal agencies.
Recommendations.--The Department recognizes that the
current environmental research parks will continue to be a
valuable resource for the overall scientific community, and we
believe the current support arrangement is working well. As
such, current Departmental activities and authorizations are
sufficient.
wind
The Department's Wind Program leads the Nation's efforts to
address the barriers to the acceleration of large-scale
deployment of land-based and offshore wind energy.
The Department's 2008 report, 20% Wind Energy by 2030,
outlines an aggressive scenario in which the U.S. could
generate 20% of its electricity by 2030, and it also identifies
the technical and non-technical barriers that must be overcome
in order to achieve this. The Department's Wind and Hydropower
Technologies Program is currently funding research to address
the challenges identified by the report, which include reducing
wind turbine capital costs by improving reliability,
integrating wind energy into the power grid, addressing
environmental and siting concerns, and building the domestic
wind manufacturing industry.
The Department is working to improve reliability of wind
technology, by, among other things, reducing blade and gearbox
failures. These failures present one of the greatest challenges
to wind technology, as they require costly repairs and reduce
investor confidence. To reduce the risk facing new turbine
technologies, the Department is funding the creation of
facilities that will help industry develop the next generation
of large wind turbine designs. For example, a new $45 million
large wind turbine drivetrain testing facility, and a new $25
million large blade test facility capable of testing 90 meter
blades have been recently awarded under Recovery Act funding.
To overcome wind energy integration challenges, the
Department is developing tools and strategies, such as wind
forecasting techniques, which will improve the integration of
wind energy with the electrical grid. The Department is funding
two state-of-the-art high penetration wind integration studies,
the Eastern Wind Integration and Transmission Study and the
Western Wind and Solar Integration Study that evaluates the
impact of integrating up to 30% wind energy into the U.S bulk
power system.
To address the environmental and siting challenges, the
Department funds projects that seek to understand and mitigate
the impacts of wind energy development on wildlife. For
example, the Department funds work at Texas Tech University and
Kansas State University to assess the environmental impacts of
wind energy on species of grassland birds. Habitat impacts on
grassland species are a particular concern because extensive
wind energy development could take place in grassy regions of
the country. Three other projects funded by the Department will
focus on developing tools to assess habitat risks when siting
wind energy projects. Jones & Stokes Associates, Inc., The
Nature Conservancy, and Pandion Systems, Inc. will each work to
develop scalable, spatially-explicit tools to calculate
potential environmental impacts from wind deployment. The
Department also provides local and state governments with
resources to help them make informed decisions about wind power
in their communities.
To build the domestic wind manufacturing industry, the
Department works with companies to develop innovative
manufacturing processes and to develop a qualified wind
workforce. For example, the Department is funding PPG
Industries in Shelby, NC to improve wind turbine blade
manufacturing processes in partnership with MAG-Industrial
Automated Systems in Hebron, KY. Current blade fabrication
technology is labor-intensive and prone to variability,
resulting in incidences of manufacturing defects.\4\ The PPG
research will develop an automated fabrication methodology to
deliver precise control of fiberglass preimpregnated material
placement. This effort will reduce blade-to-blade variability,
lower incidences of premature failure, reduce cost of wind
energy, and potentially increase blade manufacturing capability
by as much as 100% when fully implemented by a manufacturer. To
ensure an adequate wind workforce, the Department is funding a
project with Southwest Applied Technology College in Cedar
City, Utah, to provide students with practical and applied wind
energy training. The school will target skilled unemployed
workers and minority populations, especially Hispanic and
Native Americans.
---------------------------------------------------------------------------
\4\Wetzel, Kyle K. ``Defect-Tolerant Structural Design of Wind
Turbine Blades,'' American Institute of Aeronautics and Astronautics,
Inc., 2009-2409.
---------------------------------------------------------------------------
The Department's National Wind Technology Center (NWTC) in
Boulder, Colorado is recognized internationally as a leading
wind energy research and development facility. The NWTC has
advanced wind turbine testing capabilities and provides an
ideal site for testing turbines under extreme conditions; the
NWTC experiences strong wind directionality and gusts up to 85
miles per hour at wind turbine hub height. This year, the NWTC
installed a 1.5 MW wind turbine, the first utility-scale
turbine to be owned by the Department, as well as a 2.3 MW
turbine operated in partnership with industry. These turbines
are fully instrumented to act as test platforms for future R&D
to further improve the reliability and performance of wind
turbine components and to reduce the cost of wind energy. For
example, load data from the foundations of these two research
turbines will be used to help codify a national standard for
permitting requirements of utility scale wind turbines. A
uniform permitting standard would provide a significant
improvement to the current patchwork regulatory schemes imposed
on wind developers.
h.r. 3165--wind energy research and development act of 2009
Background.--This legislation authorizes $200 million
annually through 2014 for a cumulative investment of $1 billion
dollars. H.R. 3165 authorizes the Department to carry out a
wind R&D program to improve the energy efficiency, reliability,
and capacity of wind turbines through new materials and
technologies, optimize the design and adaptability of wind
energy systems, and reduce the cost of construction,
generation, and maintenance of wind energy systems. Finally,
the bill requires the Department to fund merit-reviewed, cost-
shared demonstration projects conducted in collaboration with
industry.
The Department currently has $80 million in appropriated
funding for FY 2010 to pursue RD&D of wind energy technologies.
The activities authorized in H.R. 3165 are largely consistent
with much of the work currently underway at the Department, and
with the Department's 20% Wind Energy by 2030 report, which
identified the barriers and pathways for supplying 20 percent
of the Nation's electricity from wind energy by 2030. Using
ARPA-E funding, the Department has been able to finance
breakthrough wind technologies, High Efficiency Shrouded Wind
Turbine, FloDesign (Wilbraham, MA)\5\ and Adaptive Turbine
Blades: Blown Wing Technology for Low-Cost Wind Power, PAX
Streamline Inc. (San Rafael, CA)\6\ which are consistent with
the wind program's goals.
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\5\FloDesign Wind Turbine Corporation (Wilbraham. MA) will develop
a new shrouded, axial-Bow wind turbine known as the Mixer Ejector Wind
Turbine (MEWT), which is capable of delivering significantly more
energy per unit swept area with greatly reduced rotor loading as
compared to existing horizontal 115 is wind turbines (FIAWT).
Prototypes will be built and tested, demonstrating the advantages of
lightweight materials and a protective shroud that will reduce noise
and safety concerns and accelerate distributed wind applications.
\6\PAX Streamline. Inc (San Rafael, CA), along with Georgia Tech
Research Institute, will load a project to adapt Blown Wing technology
far wind turbines, culminating in a 100 kW prototype. Circulation
control technology or ``Blown Wing'' technology creates a virtual
airfoil by jetting compressed air out a orifices along a wing and has
the potential to radically simplify the manufacture (old operation of
wind turbines. Unlike a fixed tinfoil, a Blown Wing can be dynamically
adjusted to maximize power under a wide range of wind conditions, and
can he generated from a slotted extruded pipe that can be domestically
manufactured at a fraction of the cost.
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H.R. 3165 recognizes the need to resolve the impacts of
wind turbines on federal radar assets. These radars are used to
ensure aviation safety, support homeland security, protect
military assets, and enable timely weather warnings for public
safety. The Administration realizes this is a critical
unresolved issue.
Recommendations.--The Department would like to work with
Congress to tighten Section 3's proposed demonstration program
to reflect the development status and needs of the wind
industry. We urge the Committee to consider placing special
emphasis on the demonstration of innovative offshore wind
technologies, including integrated systems, components,
structures, materials and infrastructure. Domestic, pre-
commercial, leading edge technologies remain the most
appropriate investment for a robust demonstration program. The
U.S. has yet to install a single offshore wind turbine while
Europe has over 1500 MW installed and a target of 40,000 MW by
2020. Investment by the U.S. government is critical for
development of a domestic industry. There are numerous offshore
wind projects proposed in the Great Lakes, such as the Cuyahoga
County Project in Lake Erie, and numerous projects in the
Northeast that should be supplied by U.S. manufacturers.
The Department asks that the legislation include a specific
authorization for environmental research. One set of persistent
issues facing the wind industry are the environmental impacts
associated with wind power facilities. Project developers must
not only finance, construct, and maintain wind farms, but must
also consider the effects of wind energy systems on the
surrounding environment. As written, researching the impact of
turbines on wildlife and natural habitats could be funded under
the Section 12(b)(12) ``catch-all'' provision of this bill that
enables the Secretary to determine if the Department should
perform research in addition to the prescribed areas. However,
given the significance of environmental issues associated with
wind energy systems deployment, the Department would like to
see a greater emphasis on addressing this important area of
research in collaboration with other responsible federal
agencies.
The Department is currently funding efforts to evaluate the
possible benefits of certain energy storage technologies to
assist with wind integration. Areas of study include how the
suite of power system flexibility options (including energy
storage) can best be utilized to address wind variability
issues; evaluation of the use of hydropower to assist with wind
integration; and the study of how storage technologies can be
integrated into wind power components to extend equipment
operating life.\7\
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\7\DOE is currently funding energy storage research through the
Office of Electricity Delivery and Energy Reliability (OE), and pumped-
storage hydropower research and development through the Office of
Energy Efficiency and Renewable Energy's Wind and Hydropower
Technologies Program. The Wind Program works with these parties to
coordinate and collaborate, but feels that continuing to fund these
activities under the offices that are already working on storage makes
more sense than creating separate storage activities in the Wind R&D
bill.
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s. 2773--offshore wind energy research, development, demonstration, and
commercial application act of 2009
Background.--Only very recently has the U.S. government
invested significantly in offshore wind technology research and
development, and consequently, no domestic offshore wind
systems or manufacturing base exist for the sector. In FY 2009
and FY 2010 the Federal Government began investing in offshore
wind technologies, including an $8 million Recovery Act funded
consortia led by the University of Maine that will deploy two
floating offshore turbine prototypes and conduct research to
optimize the design of floating platforms, while also providing
wind energy career educational opportunities for university
students.
S. 2773 authorizes $50 million annually from FY 2011
through FY 2021, for a cumulative investment of $500 million.
S. 2773 requires the Department to carry out a comprehensive
program of research, demonstration, and development of
commercial applications for offshore wind energy to improve the
efficiency, reliability, and capacity of offshore wind energy
systems, at all water depths, while reducing costs throughout
the supply chain.
Further, the legislation supports offshore wind resource
assessment work, while considering the technologies'
environmental impacts, benefits, and mitigation techniques for
marine ecosystems and industry. This research would also
address the unique challenges to generating energy offshore,
including siting and permitting issues, exclusion zones, and
transmission needs.
S. 2773 also authorizes the Department to award grants to
institutions of higher education to establish one or more
national offshore wind centers that meet specified requirements
to focus on deepwater offshore floating wind energy
technologies.
S. 2773's authorization levels and timeframe appear
consistent with prior Departmental and industry assessments
necessary to deploy a national offshore R&D program focused on
lowering deployment costs, ensuring high technical reliability,
facilitating economic revitalization of U.S. port facilities,
and mitigating environmental impacts.
Recommendations.--The Department estimates that only one-
third of the cost of an installed offshore wind energy facility
is represented by the wind turbine itself. Therefore, lowering
the cost of offshore wind requires additional focus on
electrical grids, project operation and maintenance, and
installation and staging costs. The bill's authorization
language should include research aimed at optimizing
installation methodology, electrical transmission design,
operations and maintenance practices, installation vessel
design, and manufacturing and assembly. With no offshore wind
turbines currently deployed in U.S. waters, this type of
government support will be integral to accelerating early-stage
offshore wind development.
While the Department supports the establishment of a
comprehensive national R&D program for offshore wind, Section 4
of the bill authorizing a national offshore wind energy
center\8\ [emphasis added] is overly prescriptive and
duplicative of the Department's recently announced deepwater
offshore wind R&D award to a consortium led by the University
of Maine. Three examples of S. 2773's language can illustrate
why such a prescriptive approach may overlook opportunities for
offshore wind. First, Section 4(b)(4) requires each ``center''
to have access to the Atlantic Ocean, the Gulf of Mexico, or
the Pacific Ocean. This language precludes the Department from
funding a center on the Great Lakes, which have significant
offshore wind energy potential and have begun to attract
investment from developers, such as the Cuyahoga County Project
in Lake Erie. Second, although R&D on offshore wind in shallow
and transitional depths is authorized by the bill, the national
center created by the bill is restricted to only deepwater
offshore wind systems. This legislative treatment favors one
offshore technology over the R&D needs of shallow and
transitional depth waters, with little policy or technical
justification. Finally, Section 4's language requiring that
universities be designated as lead institutions may prove to be
an unnecessary constraint on otherwise qualified consortia
applying to establish offshore wind centers.
---------------------------------------------------------------------------
\8\In short, the Wind Program supports the R&D section of the bill,
but does not feel that it is appropriate to designate a national center
at this time because the technology is new and committing to fund one
or a small number of centers may ``lock in'' the technology development
to the specific attributes of that location e.g. local technology
expertise, physical attributes such as water depth of the nearest site
for offshore development, turbine designs optimized for the wind speeds
at that particular location, etc.
---------------------------------------------------------------------------
The Department supports establishing a comprehensive
National Offshore Wind Energy R&D Program as contemplated by S.
2773 in which multiple research, development, and demonstration
projects play a critical role. Such projects should be
established through grants awarded on a competitive basis.
h.r. 3246--advanced vehicles technology act of 2009
Background.--Department-funded research has contributed
heavily to the advancement of vehicle technologies. The
advanced vehicle technologies in the Department's research
portfolio can significantly reduce petroleum consumption,
thereby strengthening our national energy security through both
fuel substitution and energy efficiency. For example, plug-in
hybrid electric vehicles with a 40-mile electric range using
cellulosic E85 have the potential to reduce petroleum
consumption by as much as 85% compared to conventional
gasoline-powered internal combustion engine vehicles.\9\ The
Department is not only developing the technologies to make
vehicles more energy efficient, but is also considering the
full life cycle impact of cars on the environment. For example,
the Department research produced a 40 percent weight savings on
a per-part basis for a mid-sized automobile with the
development of quick plastic forming aluminum. We have also
developed technology to reduce commercial vehicles' engine
cradle (structural element that supports the engine) weight by
65-70 percent using magnesium. Currently, the Department is
involved in the commercialization of a process that can salvage
nearly all of the plastic in a vehicle (approximately 10% of
the average vehicle's weight), not only preventing landfill
waste but also displacing oil and natural gas and reducing the
cost of plastics through recycling.
---------------------------------------------------------------------------
\9\Argonne National Laboratory Greenhouse Gases, Regulated
Emissions, and Energy Use in Transportation (GREET) Model. Emissions
associated with direct and indirect land-use change are not considered
in this analysis.
---------------------------------------------------------------------------
Other examples of technologies developed by the Department
and being used by Industry include:
Every U.S. hybrid vehicle sold has intellectual property
from the Department's Nickel Metal Hydride battery research,
and Chrysler plans to begin production on a Cummins engine
incorporating the Department's technologies which make its
internal combustion engine operate cleaner and more
efficiently. Lastly, collaborating with New Flyer, the
Department co-developed the technology for hybrid transit
buses, technology which has migrated to other applications such
as light trucks and crossover vehicles.
The Department supports H.R. 3246, as the current Vehicle
Technologies Program funding authorization expires at the end
of FY 2010. We believe the bill generally covers an appropriate
technology portfolio, includes well-placed interest in heavy-
duty vehicles, and is well aligned with prior year Program
budgets.
Recommendations.--The Department agrees with the suite of
technologies authorized in H.R. 3246. However, the inclusion of
hydrogen and fuel cell activities in H.R. 3246 would result in
duplicative authorizations and potential budgetary issues.
Currently, Title VIII of the Energy Policy Act of 2005 (EPAct
2005) serves as the authorizing language for the Department's
hydrogen and fuel cell activities, and does not sunset until FY
2020. It is likely that hydrogen and fuel cell activities were
included in H.R. 3246's activity list only because several
hydrogen activities were included in the Vehicle Technologies
FY 2009 appropriation. However, these activities were moved
back to the Fuel Cell Program for FY 2010, and are no longer
part of Vehicle Technologies.
Therefore, the Department respectfully requests to continue
to rely on EPAct 2005's authorizations for the Department's
Fuel Cell Program activities. The EPAct 2005 authorizing
language provides sufficient authorization for current DOE
activities, and removing H.R. 3246's hydrogen and fuel cell
reference would avoid any unintended complications that can
result from duplicative authorizations.
H.R. 3246 would enable the Department to build on the
Department's continuing efforts to improve existing vehicle
technologies, as well as emphasizing other modes of
transportation to significantly reduce passenger and commercial
vehicle miles traveled. We look forward to working with the
Committee and the Congress on this important legislation.
h.r. 3585--solar technology roadmap act
Background.--The goal of the Department's present Solar
Energy Technologies Program is to make solar energy
technologies cost-competitive with conventional grid
electricity by 2015 and to enable a high penetration of solar
generation energy within the U.S. This goal drives a number of
projects and initiatives relating to photovoltaic (PV) and
concentrating solar power (CSP) technologies and requires
examination of critical issues relating to grid integration and
the transformation of markets for solar technologies.
We appreciate the strong Congressional support shown for
solar technology development. The Recovery Act provides $118
million for solar initiatives. In October, the Advanced
Research Projects Administration--Energy (ARPA-E) announced
approximately $17.7 million\10\ in solar grants, and Congress
recently appropriated $225 million in FY 2010 for the
Department's Solar Program. This funding enables the Department
to make prudent investments in applied research to further
reduce the costs of solar technologies. I'd like to highlight a
few of the R&D efforts currently underway at the Department:
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\10\http://arpa-e.energy.gov/news.html.
---------------------------------------------------------------------------
Innovations arising from Department-funded R&D in the areas
of thin-film solar cells, high-efficiency single-crystal solar
cells, and very high efficiency gallium arsenide solar cells
have since been commercialized by companies such as First Solar
in Ohio, Sunpower in California, and Boeing/Spectrolab, also in
California. In August 2009, the Department announced over $37
million\11\ of awards for early-stage company investments--
including those made through the Small Business Innovative
Research program--and $14 million in investment through the
national laboratories. This includes $5 million invested in CSP
technologies. We are currently working on the next generation
of solar technologies including kerfless wafering and
atmospheric thin film processing, which can lead to broader
market impact, lower manufacturing cost, and increased
conversion efficiency.
---------------------------------------------------------------------------
\11\http://www.energy.gov/news2009/7824.htm.
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The Department is also investing in balance-of-systems
(BOS) technologies, the most significant cost barrier for PV.
BOS technologies are necessary to support full solar
electricity generation systems, but are separate from, for
example, the actual PV panel. BOS costs include items like
inverters that allow connection with the electric grid; they
can account for as much as half the total installed cost of a
solar electricity generation system, and so create substantial
barriers to lowering the cost of solar energy. As an example of
the Department's commitment in this area, the Department
recently announced awards for up to $11.8 million to five
companies to develop new inverter technologies under our Solar
Energy Grid Integration Systems program. Overall, we invested
approximately $122 million in this area in 2009, including $16
million in CSP technologies. Some of these funds are going
toward development of inverters with advanced nano-material
transformers that provide lighter weight, longer life, and
lower cost as well as advanced residential control systems that
can effectively manage PV panels along with other household
renewable and conventional power systems to maximize time-of-
day energy use.
The Department is increasing its investment in large-scale
demonstrations of integrated photovoltaics and CSP systems. As
part of funding received through the Recovery Act, the
Department recently announced $37.5 million in high-penetration
solar deployment projects. Carried out by universities, and
utilities, with national laboratory partners to assess the
technologies, these projects seek to assess the impacts of high
levels of solar-energy penetration on the electric grid.
Investigations will include both voltage and frequency behavior
of the distribution and transmission feeder portions of the
grid in the presence of clear and intermittent solar
conditions. This information is important to defining a path
for 10% or greater penetration levels of solar in the grid and
also in defining the requirements for grid energy storage use.
H.R. 3585, the Solar Technology Roadmap Act, as currently
drafted, significantly alters the form and function of the
Department's solar energy RD&D. We would like to draw the
Committee's attention to concerns we have with the consequences
of this alteration. First, the bill in effect changes the
governance of the Department's Solar Program. Second, it
changes the emphasis of the Program from cost effectiveness of
technology to instead following a prescribed mix of solar
demonstration projects.
H.R. 3585 provides the Department an authorization level of
$350 million in FY 2011, rising in $50 million increments to
$550 million in FY 2015. The aggregate authorization would
total $2.25 billion over four years, far exceeding any previous
authorization levels.
We note, however, that H.R. 3585 would supplant previous
authorities except for two provisions of the Energy
Independence and Security Act of 2007 (EISA). It would become
the de facto authorizing language for the Department's solar
activities.
Our first and greatest concern is that Sections 103 and 108
of the bill require the Department to form a semi-autonomous
Committee that will largely govern the solar-energy activities
at the Department. The proposed committee would be charged with
producing a comprehensive analysis of recommendations for
investing Federal RD&D dollars over near-, mid-, and long-term
horizons based on current issues and barriers facing the
industry. As written, the proposed legislation binds the
Department's R&D efforts to the recommendations of the Roadmap
Committee, requiring the Department to follow the Committee's
recommendations for 75 percent of all appropriations by 2015.
We urge the Congress instead to stipulate that the Committee
would provide the kinds of non-binding advice and
recommendations traditionally provided by publicly-chartered
Federal advisory committees.
Our second concern is that Section 105 specifies a solar-
technology demonstration plan that may not embody the most
appropriate scale of projects encompassing the most effective
mix of technologies, as might be determined by the Secretary.
As written, the proposed legislation prescribes a
particular schedule of future solar demonstration projects,
specified both with regard to project scale and with regard to
technology mix. These particular project sizes and technology
mixes may not provide the largest benefit to the Nation under
future conditions which we are not likely to be able to foresee
with any clarity.
While the Department welcomes the support that the proposed
legislation would provide to solar research and development,
the Department is concerned that the legislation as written may
not maximize public benefits.
The existing Solar Program actively solicits and receives
input from stakeholders in industry, the national laboratories,
and academia, through its use of peer-review as well as from
other formal and informal discussions over many years. For
example, as part of an effort to develop a PV Manufacturing
Initiative, the Solar Program worked this fall with the
National Academies of Science to hold two day-long workshops
with industry and other participants to discuss the needs of
the industry and the role of the Federal Government to promote
the domestic industry and industry standards.
The Solar Program is also now working with industry
representatives and others to develop a Solar Vision Study
which will look at opportunities to achieve 10-20 percent of
the Nation's electricity generation from solar technologies by
2030. We intend to strengthen our external review process in
the near future with an advisory board--which can be viewed as
somewhat analogous to the Roadmap Committee envisioned in the
draft bill--that will meet several times a year to review the
entire solar program.
While we welcome additional industry input and funding for
demonstration projects the Department is particularly concerned
about this bill's practical effects, which are to constrain the
flexibility the Department has to respond to diverse sources of
information and exploit new breakthroughs in technology
development, such as those made through investment in ARPA-E
grants and the HUBs.
Recommendations.--The Department strongly urges the
Committee to consider the above concerns when reviewing the
proposed legislation. Providing the most effective solar
technology research and development programs requires the
Secretary and The Department to make a series of constantly
evolving judgments. It is important that we be allowed to call
on multiple sources of information when we formulate our solar
technology R&D priorities, and that we be responsive to
provided information, even information that will only become
available as R&D programs and national markets progress.
s. 737--biofuels rd&d for nonroad engines
Background.--Through RD&D efforts geared toward the
development of integrated biorefineries, the Biomass Program is
helping transform the Nation's renewable and abundant biomass
resources into cost competitive, high performance biofuels,
bioproducts, and biopower. To that end, the Biomass Program's
R&D efforts support the goal of the EISA's Renewable Fuel
Standard that requires 36 billion gallons of renewable fuel by
2022.
DOE is currently evaluating the impact of engine durability
and emissions for use of higher ethanol blends in vehicles and
small nonroad engines. The Department has completed emissions'
lifetime testing of hand-held lawn and garden equipment,
including line trimmers, leaf blowers, and generators. These
results are reported in Effects of Intermediate Ethanol Blends
on Legacy Vehicles and Small Nonroad Engines, Report 1--
Updated\12\, which is available online.
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\12\The report is available online at http://www.nrel.gov/docs/
fy09osti/43543.pdf.
---------------------------------------------------------------------------
Over the past two years and pursuant to this small nonroad
engine effort, the Department has coordinated with the engine
industry to identify key issues, testing needs, and additional
participants. Spearheaded by the small non-road industry's
Engine Manufacturers Association and the automotive and oil
industries' Coordinating Research Council, this effort will
result shortly in a compilation of industry input and opinions.
S. 737 clarifies to the ``Biofuels Distribution and
Advanced Biofuels Infrastructure'' Program authorization in
EISA Section 248. The proposed legislation amends both the
scope of the program in Section 248(a) to include the impact of
biofuels on small engines, as well as requiring that impact on
small engines be a focus area in Section 248(b). As enacted,
the current program's authorization language does not preclude
the Department from undertaking these activities, and the
legislation's section 248(b)(9) provides an additional ``catch-
all'' provision that the Secretary could use to implement such
a program.
By supporting the investigation of problems associated with
the use of biofuels in small nonroad efforts, S. 737 is in line
with research needs already identified by the Department
concerning use of higher renewable fuel blends necessary to
meet Renewable Fuel Standard requirements.
The Department is already working on research in this area,
under its existing authorizations in both its Biomass and
Vehicle Technologies Programs. In particular, the Department is
funding testing of chainsaws, motorcycles, snowmobiles, and
marine engines. Thus, S. 737 may be useful only to the extent
that it underscores Congress' explicit support for this effort.
It is also worth noting that EISA's original Section 248,
which S. 737 amends, did not prescribe any authorization levels
for the program, and specific authorizations to carry out this
section have not been provided.
Recommendations.--The Department understands the need to
investigate potential issues with the utilization of higher-
biofuel blends in small nonroad engines and already funds a
number of research projects on nonroad engines. As a result,
the Department does not see a need for this amendment.
s. 1617--investments for manufacturing process and clean technology act
of 2009
Background.--The Department appreciates the committee's
support to improve energy efficiency across the manufacturing
sector. I am pleased to note that the Department is already
working to carry out many of the bill's goals.
Through a variety of programs, the Department provides
assistance to energy infrastructure investment to businesses of
all sizes. The Loan Guarantee Program (LGPO), Energy Efficiency
and Conservation Block Grants (EECBG), and Small Business
Innovation Research (SBIR) Program all act as funding
mechanisms to address the Nation's energy infrastructure and
generation needs.
Structurally, the Office of Energy Efficiency's (EE) Block
Grant program most closely resembles S. 1617's proposal to
create revolving loan funds to the states. A portion of the EE
block grant structure is specifically targeted towards the
creation of revolving loan funds and may be reinforced by
recent House legislation.\13\ Through the Recovery Act, $37
million\14\ was announced to support SBIR with an emphasis on
near-term commercialization and job creation. And although
current Loan Guarantee solicitations do not have special
provisions to promote the award of loans to small businesses,
LGPO is in the process of developing a Manufacturing
Solicitation that would be open to Small and Medium Enterprises
(SMEs) under our Financial Institutional Partnership Program
(FIPP). Through the current solicitation, LGPO will continue to
finance construction of manufacturing plants, as it did with
its first loan guarantee award to Solyndra, Inc. of Fremont,
CA, a SME.
---------------------------------------------------------------------------
\13\H.R. 2936: Bill to Underwrite Increased Lending to Domestic
(BUILD) Manufacturing Act http://www.govtrack.us/congress/
billtext.xpd?bill=h111-2936.
\14\http://www.energy.gov/news2009/7824.htm.
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Concerning Sec 137 (bb)(2), the Department, in consultation
with the Department of Commerce, should make the determination
of what is and is not an energy efficient product. Such a
structure would be consistent with the longstanding positive
working relationship between the two agencies on programs such
as the EnergyStar rating system. We recommend changing the
authority from the Secretary of Commerce to the Secretary of
Energy, in consultation with the Secretary of Commerce.
Recommendations.--The Department has a track record of
collaboration with other federal and State programs, including
a Memorandum of Understanding between DOE's EERE and the
Department of Commerce's Manufacturing Extension Partnership
Program. The Department stands ready to work with this
Committee and DOC to consider how the bill can be improved to
draw upon the Department's deep domain knowledge and build off
of the Department's existing programs.
s. 2744--carbon dioxide capture technology act of 2009
Background.--EPAct 2005 authorized the Department to
implement several prize competitions for breakthroughs in RD&D
and commercial applications of energy technologies.
Specifically, EPAct 2005 authorized the Freedom Prize to reduce
the country's dependence on foreign oil by rewarding innovative
deployment of existing technologies in industry, the military,
schools, governmental entities, and communities. EISA amended
EPAct 2005 to include additional prize competitions, including
the Hydrogen Prize (H-Prize) and the Bright Tomorrow Lighting
Prize (L-Prize). The H-Prize sought to provide incentives and
reward advances in technologies, components, or systems related
to hydrogen production, storage, distribution, and utilization,
while the L-Prize seeks to spur the development of ultra-
efficient solid-state lighting products. The proposed
legislation would authorize another DOE competition in another
area of research--carbon capture.
S. 2744 would authorize the Department to create a new
carbon dioxide capture technology prize, a ``C-Prize,'' to
foster novel technologies that separate carbon dioxide from
dilute sources.
The Department and the Administration consider carbon
capture to be an essential tool in the mitigation of GHG
emissions. A cost-effective technology that could significantly
contribute to the mitigation of atmospheric carbon emissions
would be consistent with the goals and objectives of the
Administration.
While the bill provides authorization to establish a C-
Prize, it sets no parameters for award amounts, which would of
course be subject to appropriations.
The Board authorized in the bill may qualify as a Federal
Advisory Committee, which would be subject to Federal Advisory
Committee Act (FACA) requirements.
Under Section 7, the bill states that the ``applicant will
agree to vest the intellectual property of the application
derived from the technology in 1 or more entities that are
incorporated in the U.S.''. The S. 2744's Intellectual Property
language is a significant departure from previous prize
legislation. The Department is concerned that the language will
deter qualified applicants from entering the competition. The
bill additionally requires C-Prize recipient(s) to vest patents
in an entity or entities incorporated in the U.S., and it
prohibits the transfer of title to other than U.S. incorporated
entities until expiration of the first patent issued. However,
the bill does little to protect U.S. technology investment
because (1) any foreign company can incorporate a subsidiary in
the U.S. for a nominal fee; and (2) the language does not
prevent the U.S. corporation from licensing its patents to
foreign companies or prevent the U.S. corporation from
manufacturing outside the U.S. Furthermore, the vesting
language, without clarification, may discourage existing U.S.
companies from competing, for fear that their investment may be
diluted by forced licensing and transfer or assignment of
patent rights.
Recommendations.--The Department urges the Committee to
consider these concerns when reviewing the proposed
legislation. The recommendations of the Committee established
in the legislation should not be prescriptive, but rather
should serve as one of several sources of information the
Department can call upon when formulating its carbon capture
technology R&D prize.
Madam Chairman, this concludes my testimony. Again, I thank
you for the opportunity to testify before this Committee, and I
would be pleased to respond to your questions.
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 S. 2843, 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):
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
Public Law 110-140; 121 Stat. 1492
AN ACT To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to
protect consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas capture
and storage options, and to improve the energy performance of the
Federal Government, and for other purposes.
* * * * * * *
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY
* * * * * * *
Subtitle B--Improved Vehicle Technology
* * * * * * *
SEC. 136. ADVANCED VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced technology vehicle.--The term ``advanced
technology vehicle'' [means an ultra efficient vehicle
or light duty vehicle that meets--] means--
(A) an ultra efficient vehicle or a light
duty vehicle that meets--
[(A)] (i) the Bin 5 Tier II emission
standard established in regulations
issued by the Administrator of the
Environmental Protection Agency under
section 202(I) of the Clean Air Act (42
U.S.C. 7521(I)), or a lower-numbered
Bin emission standard;
[(B)] (ii) any new emission standard
in effect for fine particulate matter
prescribed by the Administrator under
that Act (42 U.S.C. 7401 et seq.); and
[(C)] (iii) at least 125 percent of
the average base year combined fuel
economy for vehicles with substantially
similar attributes [.] or
(B) a vehicle such as a medium-duty or heavy-
duty work truck, bus, or rail transit vehicle
that--
(i) is used on a public street, road,
highway, or transitway;
(ii) meets each applicable emissions
standard that is established as of the
date of the application; and
(iii) as determined by the Secretary,
the deployment of which will reduce
consumption of motor fuels by 25
percent or more, as compared to current
surface transportation technologies
that perform a similar function, unless
the Secretary determines that--
(I) the percentage is not
achievable for a vehicle type
or class; and
(II) an alternative
percentage for that vehicle
type or class will result in
substantial reductions in motor
fuel consumption.
* * * * * * *
(3) Engineering integration costs.--The term
``engineering integration costs'' includes the cost of
engineering tasks relating to--
(A) incorporating qualifying components into
the design of advanced technology vehicles; and
(B) designing tooling and [equipment and]
equipment developing manufacturing processes
and material suppliers and manufacturing
process equipment for production facilities
that produce qualifying components or advanced
technology vehicles.
[(4) Qualifying components.--The term ``qualifying
components'' means components that the Secretary
determines to be--
(A) designed for advanced technology
vehicles; and
(B) installed for the purpose of meeting the
performance requirements of advanced technology
vehicles.]
(4) Qualifying components.--The term 'qualifying
components' means components, systems, or groups of subsystems
that the Secretary determines to--
(A) be designed for improving fuel economy of
advanced technology vehicles; and
(B) contribute measurably to the overall fuel
economy of the advanced technology vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The
Secretary shall provide facility funding awards under this
section [to automobile] to advanced technology vehicle
manufacturers, ultra efficient vehicle manufacturers, and
component suppliers to pay not more than 30 percent of the cost
of--
(1) reequipping, expanding, or establishing a
manufacturing facility in the United States to
produce--
* * * * * * *
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall
carry out a program to provide [a total of not more
than $25,000,000,000 in] loans to eligible individuals
and entities (as determined by the Secretary) for the
costs of activities described in subsection (b). The
loans shall be made through the Federal Financing Bank,
with the full faith and credit of the United States
Government on the principal and interest. The full
credit subsidy shall be paid by the Secretary using
appropriated funds.
* * * * * * *
(h) Set Aside for Small [Automobile] Advanced Technology
Vehicle Manufacturers and Component Suppliers.--
(1) Definition of covered firm.--In this subsection,
the term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures ultra efficient vehicles,
[automobiles] advanced technology vehicles, or
components of [automobiles] advanced technology
vehicles.
* * * * * * *
(i) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2008 through [2012] 2015.
* * * * * * *