[House Report 106-377]
[From the U.S. Government Publishing Office]
106th Congress Rept. 106-377
HOUSE OF REPRESENTATIVES
1st Session Part 2
======================================================================
METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 1999
_______
October 18, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 1753]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 1753) to promote the research, identification,
assessment, exploration, and development of methane hydrate
resources, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend 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.
This Act may be cited as the ``Methane Hydrate Research and
Development Act of 1999''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Contract.--The term ``contract'' means a procurement
contract within the meaning of section 6303 of title 31, United
States Code.
(2) Cooperative agreement.--The term ``cooperative
agreement'' means a cooperative agreement within the meaning of
section 6305 of title 31, United States Code.
(3) Director.--The term ``Director'' means the Director of
the National Science Foundation.
(4) Grant.--The term ``grant'' means a grant awarded under a
grant agreement, within the meaning of section 6304 of title
31, United States Code.
(5) Institution of higher education.--The term ``institution
of higher education'' means an institution of higher education,
within the meaning of section 1201(a) of the Higher Education
Act of 1965 (20 U.S.C. 1141(a)).
(6) Methane hydrate.--The term ``methane hydrate'' means a
methane clathrate that--
(A) is in the form of a methane-water ice-like
crystalline material; and
(B) is stable and occurs naturally in deep-ocean and
permafrost areas.
(7) Secretary.--The term ``Secretary'' means the Secretary of
Energy, acting through the Assistant Secretary for Fossil
Energy.
(8) Secretary of commerce.--The term ``Secretary of
Commerce'' means the Secretary of Commerce, acting through the
Administrator of the National Oceanic and Atmospheric
Administration.
(9) Secretary of defense.--The term ``Secretary of Defense''
means the Secretary of Defense, acting through the Secretary of
the Navy.
(10) Secretary of the interior.--The term ``Secretary of the
Interior'' means the Secretary of the Interior, acting through
the Director of the United States Geological Survey and the
Director of the Minerals Management Service.
SEC. 3. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.
(a) In General.--
(1) Commencement of program.--Not later than 180 days after
the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Commerce, the Secretary of
Defense, the Secretary of the Interior, and the Director, shall
commence a program of methane hydrate research and development.
(2) Designations.--The Secretary, the Secretary of Commerce,
the Secretary of Defense, the Secretary of the Interior, and
the Director shall designate individuals to carry out this
section.
(3) Meetings.--The individuals designated under paragraph (2)
shall meet not later than 120 days after the date on which all
such individuals are designated and not less frequently than
every 120 days thereafter to--
(A) review the progress of the program under
paragraph (1); and
(B) make recommendations on future activities to
occur subsequent to the meeting.
(b) Grants, Contracts, Cooperative Agreements, Interagency Funds
Transfer Agreements, and Field Work Proposals.--
(1) Assistance and coordination.--The Secretary may award
grants or contracts to, or enter into cooperative agreements
with, institutions of higher education and industrial
enterprises to--
(A) conduct basic and applied research to identify,
explore, assess, and develop methane hydrate as a
source of energy;
(B) assist in developing technologies required for
efficient and environmentally sound development of
methane hydrate resources;
(C) undertake research programs to provide safe means
of transport and storage of methane produced from
methane hydrates;
(D) promote education and training in methane hydrate
resource research and resource development;
(E) conduct basic and applied research to assess and
mitigate the environmental impacts of hydrate degassing
(including both natural degassing and degassing
associated with commercial development); and
(F) develop technologies to reduce the risks of
drilling through methane hydrates.
(2) Competitive merit-based review.--Funds made available
under paragraph (1) shall be made available based on a
competitive merit-based process.
(c) Consultation.--The Secretary shall establish an advisory panel
consisting of experts from industry, institutions of higher education,
and Federal agencies to--
(1) advise the Secretary on potential applications of methane
hydrate;
(2) assist in developing recommendations and priorities for
the methane hydrate research and development program carried
out under subsection (a)(1); and
(3) report to the Congress within 2 years after the date of
the enactment of this Act, or at such later date as the
Secretary considers advisable, on the impact on global climate
change from methane hydrate extraction and consumption.
(d) Limitations.--
(1) Administrative expenses.--Not more than 5 percent of the
amount made available to carry out this section for a fiscal
year may be used by the Secretary for expenses associated with
the administration of the program carried out under subsection
(a)(1).
(2) Construction costs.--None of the funds made available to
carry out this section may be used for the construction of a
new building or the acquisition, expansion, remodeling, or
alteration of an existing building (including site grading and
improvement and architect fees).
(e) Responsibilities of the Secretary.--In carrying out subsection
(b)(1), the Secretary shall--
(1) facilitate and develop partnerships among government,
industry, and institutions of higher education to research,
identify, assess, and explore methane hydrate resources;
(2) undertake programs to develop basic information necessary
for promoting long-term interest in methane hydrate resources
as an energy source;
(3) ensure that the data and information developed through
the program are accessible and widely disseminated as needed
and appropriate;
(4) promote cooperation among agencies that are developing
technologies that may hold promise for methane hydrate resource
development; and
(5) report annually to Congress on accomplishments under this
section.
SEC. 4. AMENDMENTS TO THE MINING AND MINERALS POLICY ACT OF 1970.
Section 201 of the Mining and Minerals Policy Act of 1970 (30 U.S.C.
1901) is amended--
(1) in paragraph (6)--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) by redesignating subparagraph (G) as subparagraph
(H); and
(C) by inserting after subparagraph (F) the
following:
``(G) for purposes of this section and sections 202
through 205 only, methane hydrate; and'';
(2) by redesignating paragraph (7) as paragraph (8); and
(3) by inserting after paragraph (6) the following:
``(7) The term `methane hydrate' means a methane clathrate
that--
``(A) is in the form of a methane-water ice-like
crystalline material; and
``(B) is stable and occurs naturally in deep-ocean
and permafrost areas.''.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of Energy to
carry out this Act--
(1) $5,000,000 for fiscal year 2000;
(2) $11,000,000 for fiscal year 2001;
(3) $11,000,000 for fiscal year 2002;
(4) $12,000,000 for fiscal year 2003; and
(5) $12,000,000 for fiscal year 2004.
Amounts authorized under this section shall remain available until
expended.
SEC. 6. SUNSET.
Section 3 of this Act shall cease to be effective after the end of
fiscal year 2004.
Purpose of the Bill
The purpose of H.R. 1753 is to promote the research,
identification, assessment, exploration and development of
methane hydrate resources.
Background and Need for Legislation
Methane hydrates are a temperature- and pressure-sensitive
chemical mixture of water and methane gas that can exist as a
stable, crystalline (ice) form above the normal freezing point
of water. Other gases, such as propane, are also found in
hydrate form, but the predominant gas is usually methane. The
hydrate chemical structure is conducive to the storage of large
volumes of gas. A single unit of hydrate, when heated and
depressurized, can release up to 160 times its volume in gas.
Sediments under the pressure of hundreds of meters of water
in the oceanic continental shelf of the United States are
thought to contain significant deposits of methane hydrates.
Significant hydrate deposits have also been identified at
shallower depths in the permafrost areas of the Alaskan North
Slope. The cold climate in this region allows hydrates to
remain stable at depths as shallow as 200 meters. The hydrate-
bearing sediments in both permafrost and coastal areas may be
several hundred meters thick. In addition to the solid-
crystalline hydrate deposits, free methane gas is often
encountered below sediments containing hydrates because the
hydrate layers can act as a geologic trap for the gas. Natural,
catastrophic release of hydrates has been implicated by
scientists as leading to regional instability of the sea floor,
resulting in large-scale submarine landslides and slumps. The
sudden, large-scale degassing of hydrates related to these
events could also release vast amounts of methane into the
oceans and atmosphere. Methane is considered to be ten times
more potent than carbon dioxide as a greenhouse gas; thus,
large releases could potentially contribute to climate change.
Preliminary estimates of U.S. methane hydrate resources in
1997 using information from the Ocean Drilling Program suggest
reserves of approximately 200,000 trillion cubic feet of gas,
which is over a hundred times greater than the estimated 1,400
trillion cubic feet of conventional gas resources.
H.R. 1753 is intended to stimulate research and development
efforts of the federal government in partnership with industry
and academia to shorten the time frame in which methane
hydrates are expected to contribute directly to our domestic
energy supply. Furthermore, the benefits of such research and
development efforts will very likely be first applied in
technology enhancements for conventional petroleum exploration
and production, i.e., reduction of hazards which methane
hydrates represent today to outer continental shelf oil and gas
operators who may penetrate gas hydrate zones in the course of
drilling deeper targets. Thus, the Committee believes the
expenditures authorized in this bill will be repaid to the
Nation in the form of increased energy independence through
utilization of this special form of the ``fuel of the future.''
Committee Action
H.R. 1753 was introduced on May 11, 1999, by Congressman
Michael Doyle (D-PA). The bill was referred to the Committee on
Science, and additionally to the Committee on Resources. Within
the Committee on Resources, the bill was referred to the
Subcommittee on Energy and Mineral Resources. On May 25, 1999,
the Subcommittee held a hearing on the bill. Mr. Doyle
testified in support of the bill and the potential for methane
hydrates to contribute to the Nation's future energy needs. The
Principal Deputy Assistant Secretary for Fossil Energy, Mr.
Robert Kripowitz, and Dr. Timothy Collet from the United States
Geological Survey testified for the Administration in strong
support of the bill. Other witnesses included representatives
from the National Science Foundation, and the Directors of the
three Marine Minerals Research Institutes.
On June 17, 1999, the Full Resources Committee met to
consider the bill. The Subcommittee on Energy and Mineral
Resources was discharged from further consideration of the bill
was unanimous consent. Congresswoman Barbara Cubin (R-WY)
offered an en-bloc amendment to add the Secretary of Commerce,
acting through the Director of the National Oceanographic and
Atmospheric Administration, in a consultative role, as well as
add the Minerals Management Service to the section defining the
Secretary of the Interior's consultative role with the
Secretary of Energy. The latter provision more directly
incorporates the involvement of the Marine Minerals Research
Institutes. The amendment also required the Secretary of Energy
to establish an advisory committee of experts from industry,
academia and federal agencies. Lastly, the amendment revised
the authorization for appropriations in the bill to coincide
with the most recent recommendations of the President's Council
of Advisors on Science and Technology. The amendment was
adopted by a voice vote. Congressman Jay Inslee (D-WA) offered
an amendment to direct the Secretary of Energy to report to
Congress within one year on the effect of methane hydrate
production on global climate change. Mrs. Cubin offered an
amendment to the Inslee amendment to extend the time for the
report to two years. The Cubin amendment was adopted by voice
vote and the Inslee amendment, as amended, was adopted by voice
vote. The bill as amended was then ordered favorably reported
to the House of Representatives by voice vote.
Section-by-Section Analysis
Section 1. Short title
Section 1 is the short title of the bill.
Section 2. Definitions
Section 2 defines nine terms as used in the bill.
Section 3. Methane hydrate research and development program
Section 3 outlines the development of the methane hydrate
research and development program; provides for the awarding of
grants, contracts, cooperative agreements, interagency funds
transferagreements, and field work proposals; limits the amount
of administrative funds to 5 percent of the amount to carry out the
section, and prohibits the use of funds for building costs.
Section 4. Amendments to the Mining and Minerals Policy Act
Section 4 amends the Mining and Minerals Policy Act of 1970
to provide that the Marine Minerals Research Institutes may
legitimately be funded to perform gas hydrates studies by
defining methane hydrates as a ``mineral.''
Section 5. Authorization of appropriations
Section 5 authorizes federal appropriations for methane
hydrate research at increasing levels from $5 million in fiscal
year 2000 to $12 million in fiscal year 2004. These authorized
levels are consistent with the levels recommended by the
President's Council of Advisors on Science and Technology
through 2003. The $12 million authorized for 2004 is a
projected level consistent with the level for 2003.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
Constitutional Authority Statement
Article I, section 8 and Article IV, section 3 of the
Constitution of the United States grant Congress the authority
to enact this bill.
Federal Advisory Committee Statement
The functions of the proposed advisory committee authorized
by this bill are not currently being nor could they be
performed by one or more agencies, an advisory group already in
existence or by enlarging the mandate of an existing advisory
committee.
Compliance With House Rule XIII
1. Cost of Legislation.--Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act.--As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. Government Reform Oversight Findings.--Under clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee has received no report of
oversight findings and recommendations from the Committee on
Government Reform on this bill.
4. Congressional Budget Office Cost Estimate.--Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 9, 1999.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1753, the Methane
Hydrate Research and Development Act of 1999.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kathleen
Gramp.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 1753--Methane Hydrate Research and Development Act of 1999
Summary: H.R. 1753 would authorize appropriations for a new
research and development program at the Department of Energy
(DOE) on the use of methane hydrate as a source of energy. DOE
would administer the program through grants, contracts, and
cooperative agreements with universities and industrial
enterprises. Deposits of methane hydrate occur in deep ocean
and permafrost areas of the world and consist of methane-water
ice-like crystalline material.
CBO estimates that appropriating the specified amounts
would increase discretionary spending by $41 million over the
next five years. H.R. 1753 would not affect direct spending or
receipts; therefore, pay-as-you-go procedures would not apply.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not impose costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1753 is shown in the following table.
For purposes of this estimate, CBO assumes that H.R. 1753 will
be enacted before the end of fiscal year 1999, that the
authorized amounts will be appropriated for each year, and that
outlays will occur at the rate observed for similar existing
programs. The costs of this legislation fall within budget
fucntion 270 (energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2000 2001 2002 2003 2004
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Authorization level................................................ 5 11 11 12 12
Estimated outlays.................................................. 2 6 10 11 12
----------------------------------------------------------------------------------------------------------------
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 1753
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not impose any costs on state, local,
or tribal governments. State universities might benefit from
research grants, contracts, or cooperative agreements provided
through this bill.
Previous CBO estimate: On March 9, 1999, CBO tarnsmitted a
cost estimate for S. 330, the Methane Hydrate Research and
development Act of 1999, as ordered reported by the Senate
Committee on Energy and Natural Resources on March 4, 1999.
Differences in the estimates are attributable to differences
between the two bills. The Senate bill would authorize such
sums as may be necessary for the program, which CBO estimated
would total about $45 million over the next five years. H.R.
1753 would specify authorizations totaling $41 million for
these activities over the 2000-2004 period.
Estimate prepared by: Kathleen Gramp.
Estimate aproved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (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):
SECTION 201 OF THE MINING AND MINERALS POLICY ACT OF 1970
SEC. 201. DEFINITIONS.
In this title:
(1) * * *
* * * * * * *
(6) The term ``marine mineral resource'' means--
(A) * * *
* * * * * * *
(F) metal sulfides; [and]
(G) for purposes of this section and sections
202 through 205 only, methane hydrate; and
[(G)] (H) other marine resources that are
not--
(i) oil and gas;
(ii) fisheries; or
(iii) marine mammals.
(7) The term ``methane hydrate'' means a methane
clathrate that--
(A) is in the form of a methane-water ice-
like crystalline material; and
(B) is stable and occurs naturally in deep-
ocean and permafrost areas.
[(7)] (8) The term ``Secretary'' means the Secretary
of the Interior.