The bill revises and extends the United States-Israel energy cooperation framework established under prior law. It increases funding authorities for cooperative research and for the US-Israel Energy Center, and it broadens the set of eligible collaboration areas to include hydrogen energy, fusion energy, industrial decarbonization, carbon management, agrivoltaics, grid modernization, and cybersecurity for energy infrastructure.
It also lengthens the overall authorization, extending the bilateral program through 2035. The changes are designed to deepen bilateral R&D, accelerate commercialization of clean energy technologies, and strengthen energy resilience and competitiveness.
At a Glance
What It Does
The cooperative research authorization rises to $5 million per year and the energy center funding climbs to $7 million per year, with both authorities extended through fiscal years 2026–2031. New cooperation categories are added (hydrogen, fusion, decarbonization, carbon management, agrivoltaics, grid modernization, cybersecurity). The overall US-Israel energy cooperation program is reauthorized through 2035.
Who It Affects
DOE, other federal entities administering the program, and U.S. and Israeli research partners, including industry consortia, universities, and national labs that participate in BIRD Energy projects.
Why It Matters
The changes broaden bilateral R&D collaboration, expand potential impact areas, and provide a longer planning horizon for program participants and policymakers, signaling a more integrated approach to secure, decarbonized energy technologies.
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What This Bill Actually Does
The bill updates the Energy Independence and Security Act framework governing U.S.-Israel energy collaboration, primarily by expanding funding and scope. It increases the annual cooperative research appropriation from the prior level to $5 million and raises the funding for the United States-Israel Energy Center to $7 million per year, with the authority to operate extended through fiscal years 2026 through 2031.
The legislation also extends the life of these authorities so that bilateral projects can be planned on a longer horizon.
Beyond funding, the bill broadens the list of eligible collaboration fields to include several strategic energy areas: hydrogen energy, fusion energy, industrial decarbonization, carbon management, agrivoltaics, grid modernization, and cybersecurity for energy infrastructure. This augments the program’s focus on emerging and cross-cutting technologies that could advance energy security and commercial competitiveness.
Finally, the act extends the authorization for U.S.-Israel energy cooperation through 2035, aligning long-term bilateral research priorities with a more pronounced emphasis on commercialization and resilience. The package preserves the bilateral, research-driven character of BIRD Energy while expanding its potential impact across more technologies and more years of collaboration.
The Five Things You Need to Know
The bill increases the cooperative research funding to $5,000,000 per year and extends through FY 2026–2031.
The energy center’s funding rises to $7,000,000 annually and is extended through FY 2026–2031.
New US-Israel cooperation categories are added: hydrogen energy, fusion energy, industrial decarbonization, carbon management, agrivoltaics, grid modernization, and cybersecurity for energy infrastructure.
The reauthorization for US-Israel energy cooperation is extended to 2035.
Section 917(b)(2) is amended to codify these new categories under the energy cooperation program.
Section-by-Section Breakdown
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Findings on BIRD Energy and bilateral cooperation
This section lays out the rationale for continuing and expanding the bilateral program. It reaffirms BIRD Energy’s purpose to promote U.S.-Israel collaboration in energy development, emphasize commercialization of clean energy technologies, and support economic competitiveness and job creation through joint R&D across a range of energy domains.
Extension of cooperative research authorization
Amends Section 7(d) of the 2014 United States-Israel Partnership Act by increasing the annual funding cap from $2 million to $5 million and extending the authorization to cover fiscal years 2026 through 2031. This creates a longer runway for joint research efforts and expands the scale of bilateral projects.
Extension of authorization for the Energy Center
Amends the Thornberry National Defense Authorization Act, increasing the Center’s annual funding from $4 million to $7 million and extending its authorization through fiscal years 2026 through 2031. The adjustment signals sustained federal support for joint energy R&D activities and partnerships.
Expansion of US-Israel energy cooperation categories
Adds seven new energy focus areas to the program's scope: hydrogen energy, fusion energy, industrial decarbonization, carbon management, agrivoltaics, grid modernization, and cybersecurity for energy infrastructure. These additions broaden the program’s technology boundaries to address decarbonization, grid reliability, and energy security.
Extended reauthorization through 2035
Amends the Energy Policy provisions to push the reauthorization horizon further out, ensuring continued bilateral collaboration and potential commercialization pathways beyond 2034. This longer-term outlook aligns funding, governance, and project pipelines with strategic energy priorities.
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Explore Energy in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- U.S.-based clean energy firms and research consortia participating in BIRD Energy projects gain more robust funding and longer development timelines, improving their ability to bring technologies to market.
- Israeli partner companies, universities, and research institutes benefit from expanded funding and joint opportunities that enhance bilateral innovation and competitiveness.
- U.S. universities and national laboratories involved in energy R&D receive steadier funding and a clearer path for long-run joint projects.
- U.S. energy grid operators, utilities, and cybersecurity firms could benefit from advances in grid modernization and energy infrastructure protection.
- The broader U.S. energy workforce and clean-energy manufacturing sectors stand to gain from accelerated technology deployment and job creation.
Who Bears the Cost
- U.S. taxpayers funding higher annual appropriations to support the expanded program.
- Federal agencies (notably the Department of Energy) incur administrative and reporting costs to administer the increased funding and expanded scope.
- U.S.-Israel cooperative grants and consortium teams shoulder additional compliance and project-management costs associated with broader categories and longer timelines.
- Opportunity costs could arise if funds are reallocated from other agency programs to support the expanded bilateral effort.
Key Issues
The Core Tension
The central dilemma is whether broadening bilateral cooperation and extending funding timelines yields proportional benefits given finite budgetary resources and the risk of spreading impact across more technologies without enough depth in any single area.
Expanding the program’s scope to include more technologies and extending the authorization horizon will require strong governance to avoid diffusion of impact. While broader categories can catalyze breakthroughs, they also increase the complexity of project selection, oversight, and assessment of outcomes.
The bill relies on existing statutory vehicles for funding, so the real test will be annual appropriations and the efficiency of administering a larger portfolio of bilateral projects. There is potential for duplication with other U.S. energy R&D programs if agencies do not coordinate with parallel initiatives, and higher ongoing costs will need to be weighed against anticipated energy security and economic benefits.
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