((a)) ** Applicability** Notwithstanding any other provision of law, in carrying out a research, development, demonstration, or commercial application program or activity that is initiated after , the Secretary shall require cost-sharing in accordance with this section.August 8, 20052005-08-08

((b)) ** Research and development**

((1)) ** In general** Except as provided in paragraphs (2), (3), and (4) and subsection (f), the Secretary shall require not less than 20 percent of the cost of a research or development activity described in subsection (a) to be provided by a non-Federal source.

((2)) ** Exclusion** Paragraph (1) shall not apply to a research or development activity described in subsection (a) that is of a basic or fundamental nature, as determined by the appropriate officer of the Department.

((3)) ** Reduction** The Secretary may reduce or eliminate the requirement of paragraph (1) for a research and development activity of an applied nature if the Secretary determines that the reduction is necessary and appropriate.

((4)) ** Exemption for institutions of higher education and other nonprofit institutions**

((A)) ** In general** Paragraph (1) shall not apply to a research or development activity performed by an institution of higher education or nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ()).15 U.S.C. 3703

((B)) ** Termination date** The exemption under subparagraph (A) shall apply during the 2-year period beginning on .August 9, 20222022-08-09

((c)) ** Demonstration and commercial application**

((1)) ** In general** Except as provided in paragraph (2) and subsection (f), the Secretary shall require that not less than 50 percent of the cost of a demonstration or commercial application activity described in subsection (a) to  be provided by a non-Federal source.1

((2)) ** Reduction of non-Federal share** The Secretary may reduce the non-Federal share required under paragraph (1) if the Secretary determines the reduction to be necessary and appropriate, taking into consideration any technological risk relating to the activity.

((d)) ** Calculation of amount** In calculating the amount of a non-Federal contribution under this section, the Secretary—

((1)) may include allowable costs in accordance with the applicable cost principles, including—

((A)) cash;

((B)) personnel costs;

((C)) the value of a service, other resource, or third party in-kind contribution determined in accordance with the applicable circular of the Office of Management and Budget;

((D)) indirect costs or facilities and administrative costs; or

((E)) any funds received under the power program of the Tennessee Valley Authority (except to the extent that such funds are made available under an annual appropriation Act); and

((2)) shall not include—

((A)) revenues or royalties from the prospective operation of an activity beyond the time considered in the award;

((B)) proceeds from the prospective sale of an asset of an activity; or

((C)) other appropriated Federal funds.

((e)) ** Repayment of Federal share** The Secretary shall not require repayment of the Federal share of a cost-shared activity under this section as a condition of making an award.

((f)) ** Exclusions** This section shall not apply to—

((1)) a cooperative research and development agreement under the Stevenson-Wydler Technology Innovation Act of 1980 ( et seq.);

((2)) a fee charged for the use of a Department facility; or

((3)) an award under—

((A)) the small business innovation research program under ; or

((B)) the small business technology transfer program under that section.