II 

117TH CONGRESS 

1ST SESSION S. 3112 

To amend the Energy Policy Act of 2005 to establish a Hydrogen 

Technologies for Heavy Industry Grant Program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 28, 2021 

Mr. COONS (for himself, Mr. CORNYN, Mr. CASSIDY, Mr. HEINRICH, and Mr. 

LUJA ́N) introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To amend the Energy Policy Act of 2005 to establish a 

Hydrogen Technologies for Heavy Industry Grant Program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hydrogen for Industry 

5 Act of 2021’’. 

6 SEC. 2. HYDROGEN TECHNOLOGIES FOR HEAVY INDUSTRY 

7 GRANT PROGRAM. 

8 (a) EMISSION REDUCTION PROGRAM.—Subtitle F of 

9 title IX of the Energy Policy Act of 2005 (42 U.S.C. 


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1 16291 et seq.) is amended by adding at the end the fol2 lowing: 

3 ‘‘SEC. 969E. HYDROGEN TECHNOLOGIES FOR HEAVY INDUS4 TRY GRANT PROGRAM. 

5 ‘‘(a) DEFINITION OF LOW-INCOME OR DISADVAN6 TAGED COMMUNITY.—The term ‘low-income or disadvan7 taged community’ means a community (including a city, 

8 town, county, or reasonably isolated and divisible segment 

9 of a larger municipality) with an annual median household 

10 income that is less than 100 percent of the statewide an11 nual median household income for the State in which the 

12 community is located, according to the most recent decen13 nial census. 

14 ‘‘(b) PROGRAM.—Not later than 180 days after the 

15 date of enactment of the Hydrogen for Industry Act of 

16 2021, the Secretary shall establish a program, to be 

17 known as the ‘Hydrogen Technologies for Heavy Industry 

18 Grant Program’ (referred to in this section as the ‘Pro19 gram’), under which the Secretary shall award grants to 

20 demonstrate industrial end-use applications of hydrogen 

21 for— 

22 ‘‘(1) iron, steel, and metals manufacturing; 

23 ‘‘(2) cement manufacturing; 

24 ‘‘(3) glass manufacturing; 

25 ‘‘(4) ammonia and fertilizer production; 


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1 ‘‘(5) industrial food processes; 

2 ‘‘(6) production of synthetic fuels from hydro3 gen, including with carbon oxides; 

4 ‘‘(7) fuel refining, including biorefining; 

5 ‘‘(8) chemical synthesis, including synthesis of 

6 methanol and ethylene; 

7 ‘‘(9) process heaters, including hydrogen com8 bustion with environmental controls; and 

9 ‘‘(10) any other use of hydrogen for heavy in10 dustry, as determined by the Secretary. 

11 ‘‘(c) PURPOSE.—The purpose of the Program is to 

12 support the adoption of hydrogen as an emissions reduc13 tion technology for heavy industry, including in applica14 tions where hydrogen is blended with other fuels or feed15 stocks. 

16 ‘‘(d) DEMONSTRATION PROJECTS AND OTHER AU17 THORIZED PROJECTS.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall provide 

19 grants to commercial-scale demonstration projects 

20 for end-use applications of hydrogen and other au21 thorized projects, as described in paragraph (5). 

22 ‘‘(2) AMOUNT OF GRANT.—The amount of a 

23 grant provided under this subsection shall be not 

24 more than $400,000,000. 


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1 ‘‘(3) APPLICATION.—An entity seeking a grant 

2 to conduct a demonstration project or other author3 ized project under this subsection shall submit to the 

4 Secretary an application at such time, in such man5 ner, and containing such information as the Sec6 retary may require, including a description of the 

7 manner in which the project— 

8 ‘‘(A) will contribute to the reduction of 

9 carbon emissions at the applicable facility; and 

10 ‘‘(B) in the case of a project for industrial 

11 end-use application that already uses hydrogen 

12 at scale, will reduce or avoid emissions of green13 house gases. 

14 ‘‘(4) SELECTION.— 

15 ‘‘(A) LIMITATIONS.—The Secretary shall 

16 only provide a grant under this subsection after 

17 reviewing each applicant and application under 

18 paragraph (3) with respect to— 

19 ‘‘(i) the financial strength of the ap20 plicant; 

21 ‘‘(ii) the proposed construction sched22 ule; 

23 ‘‘(iii) the market risk of the tech24 nology that the applicant seeks to dem25 onstrate, as applicable; and 


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1 ‘‘(iv) the contractor history of the ap2 plicant. 

3 ‘‘(B) PRIORITY.—In providing grants 

4 under this subsection, the Secretary shall give 

5 priority to projects that will provide greater net 

6 impact in avoiding or reducing emissions of 

7 greenhouse gases. 

8 ‘‘(C) OTHER CONSIDERATIONS.—In pro9 viding grants under this subsection, the Sec10 retary shall, to the maximum extent practicable, 

11 award grants for projects that— 

12 ‘‘(i) represent a variety of end uses of 

13 hydrogen; 

14 ‘‘(ii) will use at least 50 percent hy15 drogen blends; 

16 ‘‘(iii) will generate the greatest benefit 

17 to low-income or disadvantaged commu18 nities; and 

19 ‘‘(iv) will maximize creation or reten20 tion of domestic jobs and provide the high21 est job quality. 

22 ‘‘(5) AUTHORIZED PROJECTS.—Grant amounts 

23 provided under this subsection may be used— 

24 ‘‘(A) to carry out demonstration projects 

25 for end uses of hydrogen; 


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1 ‘‘(B) to construct a new commercial-scale 

2 facility that will use hydrogen as a fuel or feed3 stock; or 

4 ‘‘(C) to retool, retrofit, or expand an exist5 ing facility determined to be qualified by the 

6 Secretary to enable use of hydrogen as a fuel or 

7 feedstock in industrial end-use applications of 

8 hydrogen, including at multiple points within a 

9 larger facility. 

10 ‘‘(6) REQUIREMENTS.—A demonstration project 

11 receiving a grant under this subsection shall— 

12 ‘‘(A) use technologies that have completed 

13 pilot-scale testing or the equivalent, as deter14 mined by the Secretary; 

15 ‘‘(B) on completion, demonstrate hydrogen 

16 technologies used by heavy industry; and 

17 ‘‘(C) conduct hydrogen leakage monitoring, 

18 reporting, and verification programs and leak 

19 detection and repair programs. 

20 ‘‘(7) COST SHARING.—The non-Federal share 

21 of the cost of a demonstration project carried out 

22 using a grant under this subsection shall be not less 

23 than 20 percent. 

24 ‘‘(8) ENGINEERING AND DESIGN STUDIES.— 

25 The Secretary may fund front-end engineering and 


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1 design studies in addition to, or in advance of, pro2 viding a grant for a demonstration project or other 

3 authorized project under this subsection. 

4 ‘‘(e) APPLICABILITY.—No technology, or level of 

5 emission reduction, shall be treated as adequately dem6 onstrated for purposes of section 111 of the Clean Air Act 

7 (42 U.S.C. 7411), achievable for purposes of best available 

8 control technologies (as defined in section 169 of that Act 

9 (42 U.S.C. 7479)), or achievable in practice for purposes 

10 of the terms defined in section 171 of that Act (42 U.S.C. 

11 7501) solely by reason of the identification of that tech12 nology or level of emission reduction in programs estab13 lished under this Act. 

14 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

15 is authorized to be appropriated to the Secretary to carry 

16 out the Program $1,200,000,000 for the period of fiscal 

17 years 2022 through 2026.’’. 

18 (b) CLERICAL AMENDMENT.—The table of contents 

19 of the Energy Policy Act of 2005 (Public Law 109–58; 

20 119 Stat. 600) is amended by inserting after the item re21 lating to section 969D the following: 

‘‘Sec. 969E. Hydrogen Technologies for Heavy Industry Grant Program.’’. 

22 SEC. 3. STUDY. 

23 (a) IN GENERAL.—Not later than 270 days after the 

24 date of enactment of this Act, the Secretary of Energy, 

25 the Secretary of Commerce, and the Secretary of TransVerDate Sep 11 2014 17:47 Nov 01, 2021 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3112.IS S3112

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1 portation shall jointly conduct and submit to Congress a 

2 report describing the results of a study— 

3 (1) to examine the potential for emissions re4 ductions at industrial facilities through hydrogen ap5 plications, including— 

6 (A) the potential use of levelized cost of 

7 carbon abatement, or a similar metric, in ana8 lyzing industrial uses of hydrogen; and 

9 (B) the feasibility and impact of incor10 porating levelized cost of carbon abatement to 

11 compare the costs of technology options to re12 duce emissions across a range of industrial ap13 plications; 

14 (2) to fully address existing challenges with re15 spect to ensuring the safe use and handling of hy16 drogen and hydrogen-based fuels in industrial sys17 tems, including health and environmental impacts 

18 associated with the leakage of hydrogen and hydro19 gen carriers; 

20 (3) to identify and evaluate the feasibility, safe21 ty, and best practices of the use of hydrogen and 

22 ammonia as industrial fuel and feedstock; 

23 (4) to examine the feasibility of blending in24 creasing levels of hydrogen with natural gas to sup25 plement process heat requirements; 


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1 (5) to examine the environmental impacts of 

2 hydrogen combustion in hydrogen-fueled gas tur3 bines as pure hydrogen or at different ratios if used 

4 in blended fuel; and 

5 (6) to identify and evaluate considerations for 

6 transport and storage of hydrogen and hydrogen 

7 carriers, including— 

8 (A) at industrial facilities; 

9 (B) in salt caverns, hard rock caverns, and 

10 other dedicated geological storage systems; and 

11 (C) in pipelines. 

12 (b) REQUIREMENTS.—In conducting the study under 

13 subsection (a), the Secretary of Energy and the Secretary 

14 of Commerce shall— 

15 (1) take into account lessons learned from dem16 onstration projects in other industries and projects 

17 in other countries; and 

18 (2) evaluate the applicability of the lessons de19 scribed in paragraph (1) to the use of hydrogen in 

20 industrial applications. 

Æ 


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