In August 2005, President Bush signed the Energy Policy Act (EPAct) (the first national energy plan in more than a decade) into law. EPAct Sections 965, 968, and 999 all support oil and gas research and development (R&D). The first two of these sections relate to programs that the U.S. Department of Energy's (DOE) Office of Fossil Energy and the National Energy Technology Laboratory (NETL) are already implementing. Section 999, however, adds a new dimension to the overall DOE oil and gas R&D effort that involves enhancing opportunities to demonstrate technologies in the field and accelerating their implementation in the marketplace.
The Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Program launched by Section 999 is a public/private partnership designed to increase America’s domestic oil and gas supply and reduce dependency on imports. A portion of the funding is directed toward cost-shared research partnerships, while another portion will be used by NETL to carry out complementary R&D.
Section 999 sets the funding for this program at a level of $50 million per year over 10 years, provided from federal lease royalties, rents, and bonuses paid by oil and gas companies. The funds are directed specifically towards research targeting four areas: ultra-deepwater resources (35%), unconventional natural gas and other petroleum resources (32.5%), technology challenges of small producers (7.5%), and fundamental research complementary to these areas (25%). The complementary research will be performed by NETL, while all other research will be administered by the consortium overseen by NETL. Each year, RPSEA will develop and submit to DOE a draft Annual Plan, which will be used to develop the DOE Annual Plan for Section 999.