Hydrogen Fuel Cell Commercialization Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hydrogen Fuel Cell Commercialization 
Act of 1995''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) fossil fuels, the main energy source of the present, 
        have provided this country with tremendous supply but are 
        limited;
            (2) additional research, development, and demonstration are 
        needed to encourage private sector investment in development of 
        new and better energy sources and enabling technologies;
            (3) hydrogen holds tremendous promise as a fuel because it 
        can be extracted from water and solid waste, can be burned much 
        more cleanly than conventional fuels, and is a source of energy 
        for fuel cells;
            (4) inefficiencies in the production of hydrogen are a 
        major technical barrier to society's collectively benefiting 
        from one of the great energy carriers of the future;
            (5) an aggressive, results-oriented, multiyear research, 
        demonstration-commercialization initiative on efficient 
        hydrogen fuel production and use should be fostered and 
        maintained;
            (6) the current Federal effort to develop hydrogen as a 
        fuel is inadequate; and
            (7) there is ready to proceed a demonstration-
        commercialization project that--
                    (A) produces hydrogen from solid and complex waste 
                for use in fuel cells and uses a 300-kilowatt 
                photovoltaic facility in existence on the date of 
                enactment of this Act and a cryoaquatic reservoir as 
                central parts of a total energy integrated system, with 
                regeneration on-site; and
                    (B) will be environmentally beneficial and have the 
                useful by-products of electric power, heat, fuel for 
                fuel cells, and pure water.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to direct the Secretary of Energy to conduct a 
        research, development, and demonstration-commercialization 
        program leading to the production, storage, transport, and use 
        of hydrogen for industrial, institutional, residential, 
        transportation, and utility applications;
            (2) to provide advice from academia and the private sector 
        in the implementation of the Department of Energy's hydrogen 
        research, development, and demonstration-commercialization 
        program to ensure that economic benefits of the program accrue 
        to the United States; and
            (3) to provide for the immediate implementation of the 
        demonstration-commercialization project.
SEC. 4. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Demonstration-commercializaton project.--The term 
        ``demonstration-commercialization project'' means a project 
        that--
                    (A) produces hydrogen from solid and complex waste 
                for use in fuel cells and uses a 300-kilowatt 
                photovoltaic facility in existence on the date of 
                enactment of this Act and a cryoaquatic reservoir as 
                central parts of a total energy integrated system, with 
                regeneration on-site; and
                    (B) will be environmentally beneficial and have the 
                useful by-products of electric power, heat, fuel for 
                fuel cells, and pure water.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 5. RESEARCH AND DEVELOPMENT.

    (a) Authorized Activities.--
            (1) In general.--Pursuant to this section, the Spark M. 
        Matsunaga Hydrogen Research, Development, and Demonstration Act 
        of 1990 (42 U.S.C. 12401 et seq.), and section 2026 of the 
        Energy Policy Act of 1992 (42 U.S.C. 13436), and in accordance 
        with the purposes of this Act, the Secretary shall conduct a 
        hydrogen energy research, development, and demonstration-
        commercialization program relating to production, storage, 
        transportation, and use of hydrogen, with the goal of enabling 
        the private sector to demonstrate the feasibility of using 
        hydrogen for industrial, institutional, residential, 
        transportation, and utility applications.
            (2) Priorities.--In establishing priorities for Federal 
        funding under this section, the Secretary shall survey private 
        sector hydrogen activities and take steps to ensure that 
        activities under this section do not displace or compete with 
        privately funded hydrogen activities of the United States 
        industry.
    (b) Schedule.--
            (1) Solicitation.--Not later than 180 days after the date 
        of enactment of an Act providing appropriations for programs 
        authorized by this Act, the Secretary shall solicit proposals 
        from all interested parties for research and development 
        activities authorized under this section.
            (2) Department facility.--The Secretary may consider, on a 
        competitive basis, a proposal from a contractor that manages 
        and operates a department facility under contract with the 
        Department, and the contractor may perform the work at that 
        facility or any other facility.
            (3) Award.--Not later than 180 days after proposals are 
        submitted, if the Secretary identifies 1 or more proposals that 
        are worthy of Federal assistance, the Secretary shall award 
        financial assistance under this section competitively, using 
        peer review, when appropriate, of proposals with appropriate 
        protection of proprietary information.
    (c) Cost Sharing.--
            (1) Research.--
                    (A) In general.--Except as provided in subparagraph 
                (B), in the case of a research proposal, the Secretary 
                shall require a commitment from non-Federal sources of 
                at least 25 percent of the cost of the research.
                    (B) Basic or fundamental nature.--The Secretary may 
                reduce or eliminate the non-Federal requirement under 
                subparagraph (A) if the Secretary determines that the 
                research is purely basic or fundamental.
            (2) Development and demonstration.--
                    (A) In general.--In the case of a development or 
                demonstration proposal, the Secretary shall require a 
                commitment from non-Federal sources of at least 50 
                percent of the cost of development or demonstration.
                    (B) Technological risks.--The Secretary may reduce 
                the non-Federal requirement under subparagraph (A) if 
                the Secretary determines that--
                            (i) the reduction is necessary and 
                        appropriate considering the technological risks 
                        involved in the project; and
                            (ii) the reduction is necessary to serve 
                        the purpose and goals of the Act.
            (3) Nature of non-federal commitment.--In calculating the 
        amount of the non-Federal commitment under paragraph (1) or 
        (2), the Secretary shall include cash and fair market value of 
        personnel, services, equipment, facilities associated with the 
        project that are integral to the demonstration-
        commercialization, and other resources.
    (d) Consultation.--Before financial assistance is provided under 
this section or the Spark M. Matsunaga Hydrogen Research, Development, 
and Demonstration Act of 1990 (42 U.S.C. 12401 et seq.)--
            (1) the Secretary shall determine, in consultation with the 
        United States Trade Representative and the Secretary of 
        Commerce, that the terms and conditions under which financial 
        assistance is provided are consistent with the Agreement on 
        Subsidies and Countervailing Measures referred to in section 
        101(d)(12) of the Uruguay Round Agreement Act (19 U.S.C. 
        3511(d)(12)); and
            (2) an industry participant shall be required to certify 
        that--
                    (A) the participant has made reasonable efforts to 
                obtain non-Federal funding for the entire cost of the 
                project; and
                    (B) full non-Federal funding could not be 
                reasonably obtained.
    (e) Duplication of Programs.--The Secretary shall not carry out any 
activity under this section that unnecessarily duplicates an activity 
carried out by another government agency or the private sector.

SEC. 6. DEMONSTRATION-COMMERCIALIZATION PROJECT.

    (a) In General.--The Secretary shall assist in the development and 
operation of a demonstration-commercialization project.
    (b) Cost Sharing.--
            (1) Federal share.--The Federal share of the development 
        and operation of the demonstration-commercialization project 
        shall not exceed 50 percent.
            (2) Nature of non-federal share.--In calculating the amount 
        of the non-Federal share committed to the project, the 
        Secretary shall include cash and fair market value of, 
        personnel, services, equipment, existing facilities, 
        development costs, and other resources associated with the 
        demonstration-commercialization project.

SEC. 7. TECHNOLOGY TRANSFER.

    (a) Exchange.--The Secretary shall foster the exchange of generic, 
nonproprietary information and technology developed pursuant to section 
5 among industry, academia, and government agencies and establish a 
central depository for technical information and technology transfer.
    (b) Economic Benefits.--The Secretary shall ensure that economic 
benefits of the exchange of information and technology will accrue to 
the United States economy.

SEC. 8. REPORTS TO CONGRESS.

    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
transmit to Congress a detailed report on the status and progress of 
the Department's hydrogen research and development program.
    (b) Contents.--A report under subsection (a) shall include--
            (1) an analysis of the effectiveness of the program, to be 
        prepared and submitted by the Hydrogen Technical Advisory Panel 
        established under section 108 of the Spark M. Matsunaga 
        Hydrogen Research, Development, and Demonstration Act of 1990 
        (42 U.S.C. 12407); and
            (2) recommendations of the panel for any improvements in 
        the program that are needed, including recommendations for 
        additional legislation.

SEC. 9. COORDINATION AND CONSULTATION.

    (a) Coordination With Other Federal Agencies.--The Secretary 
shall--
            (1) coordinate all hydrogen research and development 
        activities in the Department with the activities of other 
        Federal agencies, including the Department of Defense, the 
        Department of Transportation, and the National Aeronautics and 
        Space Administration, that are engaged in similar research and 
        development; and
            (2) pursue opportunities for cooperation with those Federal 
        entities.
    (b) Consultation.--The Secretary shall consult with the Hydrogen 
Technical Advisory Panel established under section 108 of the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12407) as necessary in carrying out this Act.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act--
            (1) for research, development, and demonstration projects--
                    (A) $25,000,000 for fiscal year 1997;
                    (B) $35,000,000 for fiscal year 1998; and
                    (C) $40,000,000 for fiscal year 1999; and
            (2) for the demonstration-commercialization project--
                    (A) $25,000,000 for fiscal year 1997; and
                    (B) $25,000,000 for fiscal year 1998.

Summary: Hydrogen Fuel Cell Commercialization Act of 1995 - Instructs the Secretary of Energy to conduct a hydrogen energy research, development, and demonstration-commercialization program relating to production, storage, transportation and use of hydrogen, in order to demonstrate its feasibility for industrial, institutional, residential, transportation, and utility applications. Requires the Secretary to survey private sector hydrogen activities and take steps to ensure that Federal activities do not displace or compete with privately funded hydrogen activities of US industry. Sets forth a proposal solicitation schedule. Directs the Secretary to require a specified cost-sharing commitment from non-Federal sources. Allows the Secretary to reduce the non-Federal requirement if: (1) necessary and appropriate considering the technological risks involved in the project. And (2) such reduction is necessary to serve the purposes of the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 . Sets as a prerequisite to Federal financial assistance certification by: (1) the Secretary that such assistance is consistent with a specified Agreement on Subsidies and Countervailing Measures approved in the Uruguay Round Agreements Act. And (2) industry participants that they have made reasonable efforts to obtain non-Federal funding for the entire cost of the project, and that such non-Federal funding could not be reasonably obtained. Prohibits the Secretary from implementing activities that unnecessarily duplicate activities implemented elsewhere by either the Federal or private sectors. Directs the Secretary to assist in the development and operation of a demonstration-commercialization project. Directs the Secretary to: (1) foster technology transfer activities between the Federal, industrial, and academic sectors, (2) report annually to the Congress. (3) coordinate with other Federal agencies involved in similar hydrogen research activities. And (4) consult with the Hydrogen Technical Advisory Panel established under the Act. Authorizes appropriations.