A bill to authorize the Secretary of Energy to establish monetary prizes for achievements in overcoming scientific and technical barriers associated with hydrogen energy.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``H-Prize Act of 2006''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administering entity.--The term ``administering 
        entity'' means the entity with which the Secretary enters into 
        an agreement under section 3(c).
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. PRIZE AUTHORITY.

    (a) In General.--The Secretary shall carry out a program to 
competitively award cash prizes only in conformity with this Act to 
advance the research, development, demonstration, and commercial 
application of hydrogen energy technologies.
    (b) Advertising and Solicitation of Competitors.--
            (1) Advertising.--The Secretary shall widely advertise 
        prize competitions to encourage broad participation, including 
        participation by--
                    (A) individuals;
                    (B) institutions of higher education, including 
                historically Black colleges and universities and other 
                institutions serving minorities; and
                    (C) large and small businesses, including 
                businesses owned or controlled by socially and 
                economically disadvantaged persons.
            (2) Announcement through federal register notice.--
                    (A) In general.--The Secretary shall announce each 
                prize competition by publishing a notice in the Federal 
                Register.
                    (B) Requirements.--The notice shall include a 
                description of--
                            (i) the subject of the competition;
                            (ii) the duration of the competition;
                            (iii) the eligibility requirements for 
                        participation in the competition;
                            (iv) the process for participants to 
                        register for the competition;
                            (v) the amount of the prize; and
                            (vi) the criteria for awarding the prize.
    (c) Administering the Competitions.--
            (1) In general.--The Secretary shall enter into an 
        agreement with a private, nonprofit entity to administer the 
        prize competitions, subject to this Act.
            (2) Duties.--The duties of the administering entity under 
        the agreement shall include--
                    (A) advertising prize competitions and the results 
                of the prize competitions;
                    (B) raising funds from private entities and 
                individuals to pay for administrative costs and 
                contribute to cash prizes;
                    (C) working with the Secretary to develop the 
                criteria for selecting winners in prize competitions, 
                based on goals provided by the Secretary;
                    (D) determining, in consultation with the 
                Secretary, the appropriate amount for each prize to be 
                awarded;
                    (E) selecting judges in accordance with section 
                4(d), using criteria developed in consultation with the 
                Secretary; and
                    (F) preventing the unauthorized use or disclosure 
                of the intellectual property, trade secrets, and 
                confidential business information of registered 
                participants.
    (d) Funding Sources.--
            (1) In general.--Cash prizes under this Act shall consist 
        of funds appropriated under section 8 and any funds provided by 
        the administering entity for the cash prizes (including funds 
        raised pursuant to subsection (c)(2)(B)).
            (2) Other federal agencies.--The Secretary may accept funds 
        from other Federal agencies for the cash prizes.
            (3) No special consideration.--The Secretary may not give 
        any special consideration to any private sector entity or 
        individual in return for a donation to the administering 
        entity.
    (e) Announcement of Prizes.--
            (1) In general.--The Secretary may not issue a notice 
        required by subsection (b)(2) until all the funds needed to pay 
        out the announced amount of the prize have been appropriated or 
        committed in writing by the administering entity.
            (2) Increase in amount of prize.--The Secretary may 
        increase the amount of a prize after an initial announcement is 
        made under subsection (b)(2) if--
                    (A) notice of the increase is provided in the same 
                manner as the initial notice of the prize; and
                    (B) the funds needed to pay out the announced 
                amount of the increase have been appropriated or 
                committed in writing by the administering entity.

SEC. 4. PRIZE CATEGORIES.

    (a) Categories.--The Secretary shall establish prizes for--
            (1) advancements in components or systems related to--
                    (A) hydrogen production;
                    (B) hydrogen storage;
                    (C) hydrogen distribution; and
                    (D) hydrogen utilization;
            (2) prototypes of hydrogen-powered vehicles or other 
        hydrogen-based products that best meet or exceed objective 
        performance criteria, such as completion of a race over a 
        certain distance or terrain or generation of energy at certain 
        levels of efficiency; and
            (3) transformational changes in technologies for the 
        distribution or production of hydrogen that meet or exceed far-
        reaching objective criteria that--
                    (A) shall include minimal carbon emissions; and
                    (B) may include cost criteria designed to 
                facilitate the eventual market success of a winning 
                technology.
    (b) Awards.--
            (1) Advancements.--
                    (A) In general.--To the extent permitted under 
                section 3(e), the prizes authorized under subsection 
                (a)(1) shall be awarded biennially to the most 
                significant advance made in each of the 4 subcategories 
                described in subparagraphs (A) through (D) of 
                subsection (a)(1) since the submission deadline of the 
                previous prize competition in the same category under 
                subsection (a)(1) or the date of enactment of this Act, 
                whichever is later, unless no such advance is 
                significant enough to merit an award.
                    (B) Maximum amount for single prize.--No single 
                prize described in subparagraph (A) may exceed 
                $1,000,000.
                    (C) Insufficient total funds.--If less than 
                $4,000,000 is available for a prize competition under 
                subsection (a)(1), the Secretary may--
                            (i) omit 1 or more subcategories;
                            (ii) reduce the amount of the prizes; or
                            (iii) not hold a prize competition.
            (2) Prototypes.--
                    (A) In general.--To the extent permitted under 
                section 3(e), prizes authorized under subsection (a)(2) 
                shall be awarded biennially in alternate years from the 
                prizes authorized under subsection (a)(1).
                    (B) Total number of prizes.--The Secretary may 
                award no more than 1 prize under subsection (a)(1) in 
                each 2-year period.
                    (C) Maximum amount for single prize.--No single 
                prize under this paragraph may exceed $4,000,000.
                    (D) Insufficient qualified entries.--If no 
                registered participant meets the objective performance 
                criteria established pursuant to subsection (c) for a 
                competition under this paragraph, the Secretary shall 
                not award a prize.
            (3) Transformational technologies.--
                    (A) In general.--To the extent permitted under 
                section 3(e), the Secretary shall announce 1 prize 
                competition authorized under subsection (a)(3) as soon 
                as practicable after the date of enactment of this Act.
                    (B) Amount of prize.--A prize offered under this 
                paragraph shall--
                            (i) be in an amount not less than 
                        $10,000,000;
                            (ii) be paid to the winner in a lump sum; 
                        and
                            (iii) include an additional amount paid to 
                        the winner as a match for each dollar of non-
                        Federal funding raised by the winner for the 
                        hydrogen technology beginning on the date the 
                        winner was named.
                    (C) Matching.--
                            (i) In general.--The match described in 
                        subparagraph (B)(iii) shall be provided until 
                        the earlier of--
                                    (I) the date that is 3 years after 
                                the date the prize winner is named; or
                                    (II) the date on which the full 
                                amount of the prize has been paid out.
                            (ii) Election.--A prize winner may elect to 
                        have the match amount paid to another entity 
                        that is continuing the development of the 
                        winning technology.
                            (iii) Rules.--The Secretary shall announce 
                        the rules for receiving the match in the notice 
                        required by section 3(b)(2).
                    (D) Requirements.--The Secretary shall award a 
                prize under this paragraph only when a registered 
                participant has met the objective criteria established 
                for the prize pursuant to subsection (c) and announced 
                pursuant to section 3(b)(2).
                    (E) Total amount of funds.--
                            (i) Federal funds.--Not more than 
                        $10,000,000 in Federal funds may be used for 
                        the prize award under this paragraph.
                            (ii) Matching funds.--As a condition of 
                        entering into an agreement under section 3(c), 
                        the administering entity shall seek to raise 
                        $40,000,000 in non-Federal funds toward the 
                        matching award under this paragraph.
    (c) Criteria.--In establishing the criteria required by this Act, 
the Secretary shall consult with--
            (1) the Hydrogen Technical and Fuel Cell Advisory Committee 
        of the Department;
            (2) other Federal agencies, including the National Science 
        Foundation; and
            (3) private organizations, including professional 
        societies, industry associations, the National Academy of 
        Sciences, and the National Academy of Engineering.
    (d) Judges.--
            (1) In general.--For each prize competition, the Secretary 
        shall assemble a panel of qualified judges to select the 1 or 
        more winners on the basis of the criteria established under 
        subsection (c).
            (2) Inclusions.--Judges for each prize competition shall 
        include individuals from outside the Department, including from 
        the private sector.
            (3) Prohibitions.--A judge may not--
                    (A) have personal or financial interests in, or be 
                an employee, officer, director, or agent of, any entity 
                that is a registered participant in the prize 
                competition for which the judge will serve as a judge; 
                or
                    (B) have a familial or financial relationship with 
                an individual who is a registered participant in the 
                prize competition for which the judge will serve as a 
                judge.

SEC. 5. ELIGIBILITY.

    To be eligible to win a prize under this Act, an individual or 
entity--
            (1) shall have complied with all the requirements in 
        accordance with the Federal Register notice required under 
        section 3(b)(2);
            (2) in the case of a private entity, shall be incorporated 
        in and maintain a primary place of business in the United 
        States;
            (3) in the case of an individual (whether participating 
        singly or in a group), shall be a citizen of, or an alien 
        lawfully admitted for permanent residence in, the United 
        States; and
            (4) shall not be a Federal entity, a Federal employee 
        acting within the scope of employment, or an employee of a 
        national laboratory acting within the scope of employment.

SEC. 6. INTELLECTUAL PROPERTY.

    (a) In General.--Subject to subsection (b), the Federal Government 
shall not, by virtue of offering or awarding a prize under this Act, be 
entitled to any intellectual property rights derived as a consequence 
of, or direct relation to, the participation by a registered 
participant in a competition authorized by this Act.
    (b) Negotiation of Licenses Permitted.--This section does not 
prevent the Federal Government from negotiating a license for the use 
of intellectual property developed for a prize competition under this 
Act.

SEC. 7. LIABILITY.

    (a) Waiver of Liability.--
            (1) In general.--As a condition of participation in a 
        competition under this Act, the Secretary may require 
        registered participants to waive claims against the Federal 
        Government and the administering entity (except claims for 
        willful misconduct) for any injury, death, damage, or loss of 
        property, revenue, or profits arising from the participation of 
        the registered participants in a competition under this Act.
            (2) Notice required.--The Secretary shall provide notice of 
        any waiver required under this subsection in the notice 
        required by section 3(b)(2).
            (3) Prohibition.--The Secretary may not require a 
        registered participant to waive claims against the 
        administering entity arising out of the unauthorized use or 
        disclosure by the administering entity of the intellectual 
        property, trade secrets, or confidential business information 
        of the registered participant.
    (b) Liability Insurance.--
            (1) Requirements.--As a condition of participation in a 
        competition under this Act, a registered participant shall be 
        required to obtain liability insurance or demonstrate financial 
        responsibility, in amounts determined by the Secretary, for 
        claims by--
                    (A) a third party for death, bodily injury, or 
                property damage or loss resulting from an activity 
                carried out in connection with participation in a 
                competition under this Act; and
                    (B) the Federal Government for damage or loss to 
                Government property resulting from such an activity.
            (2) Federal government insured.--
                    (A) In general.--The Federal Government shall be 
                named as an additional insured under the insurance 
                policy of a registered participant required under 
                paragraph (1)(A).
                    (B) Mandatory indemnification.--As a condition of 
                participation in a competition under this Act, a 
                registered participant shall be required to agree to 
                indemnify the Federal Government against third party 
                claims for damages arising from or related to 
                competition activities.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--
            (1) Awards.--There are authorized to be appropriated to the 
        Secretary to carry out this Act for the period of fiscal years 
        2007 through 2016--
                    (A) $20,000,000 for awards described in section 
                4(a)(1);
                    (B) $20,000,000 for awards described in section 
                4(a)(2); and
                    (C) $10,000,000 for the award described in section 
                4(a)(3).
            (2) Administration.--In addition to the amounts authorized 
        in paragraph (1), there are authorized to be appropriated to 
        the Secretary for the administrative costs of carrying out this 
        Act $2,000,000 for each of fiscal years 2007 through 2016.
    (b) Carryover of Funds.--
            (1) In general.--Funds appropriated for prize awards under 
        this Act--
                    (A) shall remain available until expended; and
                    (B) may be transferred, reprogrammed, or expended 
                for other purposes only after the expiration of 10 
                fiscal years after the fiscal year for which the funds 
                were originally appropriated.
            (2) Relation to other law.--No provision in this Act 
        permits obligation or payment of funds in violation of section 
        1341 of title 31, United States Code (commonly known as the 
        ``Anti-Deficiency Act'').

SEC. 9. MAINTENANCE OF EFFORT.

    The Secretary shall ensure that funds provided under this Act will 
be used only to supplement, and not to supplant, Federal research and 
development programs.

SEC. 10. SUNSET.

    The authority provided by this Act shall terminate on September 30, 
2017.

Summary: H-Prize Act of 2006 - Directs the Secretary of Energy to award competitive cash prizes biennially to advance the research, development, demonstration, and commercial application of hydrogen energy technologies. Instructs the Secretary to encourage broad participation, including by individuals, universities , and large and small businesses . Directs the Secretary enter into an agreement with a private, nonprofit entity to administer the prize competitions. States that funding sources for such cash prizes shall consist of federal appropriated funds and funds provided by the administering entity. Designates prize-eligible categories, including: (1) advancements in certain hydrogen components or systems. (2) prototypes of hydrogen-powered vehicles or other hydrogen-based products that meet or exceed certain performance criteria. And (3) transformational changes in technologies for hydrogen distribution or production that meet or exceed far-reaching criteria. Declares that the federal government shall not, by virtue of offering or awarding a prize under this Act, be entitled to any intellectual property rights derived as a consequence of, or direct relation to, the participation by a registered participant in a competition authorized by this Act.