To provide for the establishment of research, development, demonstration, and commercial application programs for fuel cell and hydrogen production, delivery, and storage technologies for transportation and stationary applications.

Summary: Directs the Secretary of Transportation to establish a research, development, demonstration, and commercial application program for fuel cell and hydrogen production, delivery, and storage technologies for transportation and stationary applications that meet specified goals.

SECTION 1. CORE FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              TRANSPORTATION AND STATIONARY POWER GENERATION.

    (a) In General.--The Secretary shall establish a research, 
development, demonstration, and commercial application program for fuel 
cell technologies for transportation and stationary applications with 
the following goals:
            (1) Reducing the production cost of hydrogen or gasoline 
        fueled vehicle fuel cell power systems (including hydrogen 
        storage costs) to $45 per kilowatt in 2010 at production levels 
        of 500,000 units per year.
            (2) Increasing the electrical efficiency of natural gas or 
        propane fueled stationary fuel cell systems to 40 percent in 
        2010.
            (3) Validating solutions to the performance and vehicle 
        interface issues of hydrogen fuel cell vehicles to demonstrate 
        an increase in durability in a vehicle fleet of such fuel cells 
        to 2000 hours by 2008.
    (b) Elements of Program.--The program authorized under this section 
shall include elements that focus on achieving low cost, high-
efficiency, fuel flexible, modular fuel cell power systems, improved 
manufacturing production and processes, high-temperature membranes, 
cost effective fuel processing for natural gas, fuel cell stack and 
system reliability and durability, and freeze/cold start capability.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section--
            (1) $78,000,000 for fiscal year 2004;
            (2) $80,000,000 for fiscal year 2005;
            (3) $100,000,000 for fiscal year 2006;
            (4) $110,000,000 for fiscal year 2007; and
            (5) $122,000,000 for fiscal year 2008.

SEC. 2. HYDROGEN TECHNOLOGY.

    (a) In General.--The Secretary shall establish a research, 
development, demonstration, and commercial application program for 
hydrogen technologies with the following goals:
            (1) Developing and demonstrating distributed hydrogen 
        generation technology that will reduce the cost (before taxes) 
        of producing hydrogen from natural gas, when produced in large 
        quantities, to $1.50 per gallon of gasoline equivalent at 
        fueling stations in 2010.
            (2) Developing and demonstrating hydrogen production from 
        renewable energy resources at a cost of $2.60 per kilogram in 
        2008, using biomass-based production.
            (3) Developing and validating a hydrogen storage technology 
        with--
                    (A) specific energy of 2.0 kilowatt hours per 
                kilogram (6 weight percent capacity), and energy 
                density of 1.5 kilowatt hours per liter by 2010; and
                    (B) specific energy of 3.0 kilowatt hours per 
                kilogram (9 weight percent capacity), and energy 
                density of 2.7 kilowatt hours per liter by 2015.
            (4) Validating a projected cost of $3.00 per gallon 
        gasoline equivalent at fueling stations, using infrastructure 
        and vehicle interface technologies, by 2008.
    (b) Activities.--In carrying out this section, the Secretary 
shall--
            (1) draft technical specifications for an international 
        agreement on a global technology regulation for hydrogen fuel 
        cell vehicles and infrastructure;
            (2) educate key target audiences, including students and 
        teachers, local and State government representatives, and large 
        scale end users, on the concept of a hydrogen economy and how 
        it may affect them;
            (3) initiate tests of prototype hydrogen-from-gas 
        production technologies and award projects for hydrogen 
        production and capture of associated carbon dioxide;
            (4) initiate a hydrogen-from-coal initiative and identify 
        appropriate institutions to establish the feasibility of 
        emerging alternate coal-based hydrogen technologies, 
        investigate advanced separation technologies, and utilize a 
        combination of experimental and advanced computational methods 
        to determine optimal reaction chemistries for producing 
        hydrogen-from-coal-derived fuels; and
            (5) initiate a nuclear hydrogen initiative to develop and 
        demonstrate the feasibility of nuclear energy for the large-
        scale, emission-free production of hydrogen.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section--
            (1) $104,000,000 for fiscal year 2004;
            (2) $120,000,000 for fiscal year 2005;
            (3) $140,000,000 for fiscal year 2006;
            (4) $160,000,000 for fiscal year 2007; and
            (5) $186,000,000 for fiscal year 2008.

SEC. 3. MERIT REVIEW OF PROPOSALS.

    Awards of funds authorized under this Act shall be made only after 
an impartial review of the scientific and technical merit of the 
proposals for such awards has been carried out by or for the Department 
of Energy.

SEC. 4. DEFINITION.

    For purposes of this Act, the term ``Secretary'' means the 
Secretary of Energy.