In an interesting provision in the new Energy Independence and Security Act of 2007, the U.S. pledged to fund cooperative research and development efforts with Israel to develop alternative sources of renewable energy. Israel is a recognized leader in alternative energy technology, and the home of more than 200 companies that research and develop environmental and energy-related technologies.

One of major areas of Israeli expertise is solar technologies. Israeli companies have helped build at least nine solar plants in southern California, and are playing a significant role in a Nevada project that is currently underway. The State of Israel boasts the highest per-capita rate of solar collectors in the world, with 67.5 square feet per 100 people.

In addition to solar energy, the program will provide grants to joint ventures between American and Israeli institutions in the areas of biomass energy, energy efficiency, wind, geothermal, wave and tidal energies, and advanced battery technology. To receive funding, the project must be a joint venture, having both an Israeli and an American party. Participants can be for-profit businesses, non-profits, academic institutions, or national laboratories.

Funding for this venture comes from Section 931 of the Energy Policy Act of 2005, which provides a total of $743,000,000 for fiscal year 2008 and $852,000,000 for fiscal 2009 for all federal alternative energy research and development programs. There are no specific dollar amounts earmarked for this joint venture, so applicants will be competing for funding with participants in other federally-sponsored alternative energy research programs.

For further information about this topic, please contact Akin Gump.