Calendar No. 595

104TH CONGRESS

2D SESSION H. R. 655

AN ACT

To authorize basic research, development, and dempurposes. onstration on hydrogen as a fuel, and for other

SEPTEMBER 13, 1996

Reported with an amendment
II

Calendar No. 595

104TH CONGRESS

2D SESSION H. R. 655

IN THE SENATE OF THE UNITED STATES

MAY 3 (legislative day, MAY 1), 1995

Received; read twice and referred to the Committee on Energy and Natural

Resources

SEPTEMBER 13, 1996

Reported by Mr. MURKOWSKI, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

AN ACT

To authorize basic research, development, and demonstration

on hydrogen as a fuel, 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 Future Act

5 of 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—
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1 (1) fossil fuels, the main energy source of the

2 present, have provided this country with tremendous

3 supply but are limited and polluting;

4 (2) additional basic research and development

5 are needed to encourage private sector investment in

6 development of new and better energy sources and

7 enabling technologies;

8 (3) hydrogen holds tremendous promise as a

9 fuel, because it can be extracted from water and can

10 be burned much more cleanly than conventional

11 fuels;

12 (4) hydrogen production efficiency is a major

13 technical barrier to society collectively benefiting

14 from one of the great energy sources of the future;

15 (5) an aggressive, results-oriented, multiyear re16 search initiative on efficient hydrogen fuel produc17 tion and use should continue; and

18 (6) the current Federal effort to develop hydro19 gen as a fuel is inadequate.

20 SEC. 3. PURPOSES.

21 The purposes of this Act are—

22 (1) to provide for a basic research, develop23 ment, and demonstration program leading to the

24 production, storage, transport, and use of hydrogen
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1 for industrial, residential, transportation, and utility

2 applications; and

3 (2) to provide for advice from academia and the

4 private sector in the implementation of the Depart5 ment of Energy hydrogen research, development,

6 and demonstration program to ensure that economic

7 benefits of the program accrue to the United States.

8 SEC. 4. DEFINITIONS.

9 For purposes of this Act—

10 (1) the term ‘‘demonstration’’ means a valida11 tion of the technical feasibility of a theory or proc12 ess;

13 (2) the term ‘‘Department’’ means the Depart14 ment of Energy; and

15 (3) the term ‘‘Secretary’’ means the Secretary

16 of Energy.

17 SEC. 5. RESEARCH AND DEVELOPMENT.

18 (a) AUTHORIZED ACTIVITIES.—Pursuant to this sec19 tion, the Spark M. Matsunaga Hydrogen Research, Devel20 opment, and Demonstration Act of 1990 and the Energy

21 Policy Act of 1992, and in accordance with the purposes

22 of this Act, the Secretary shall provide for a hydrogen en23 ergy basic research, development, and demonstration pro24 gram relating to production, storage, transportation, and

25 use of hydrogen, with the goal of enabling the private sec-
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1 tor to demonstrate the technical feasibility of using hydro2 gen for industrial, residential, transportation, and utility

3 applications. In establishing priorities for Federal funding

4 under this section, the Secretary shall survey private sec5 tor hydrogen activities and take steps to ensure that ac6 tivities under this section do not displace or compete with

7 the privately funded hydrogen activities of United States

8 industry.

9 (b) SCHEDULE.—Within 180 days after the date of

10 the enactment of the later of this Act or an Act providing

11 appropriations for programs authorized by this Act, the

12 Secretary shall solicit proposals from all interested parties

13 for carrying out the research, development, and dem14 onstration activities authorized under this section. The

15 Secretary may consider a proposal from a contractor who

16 manages and operates a Department facility under con17 tract with the Department, and the contractor may per18 form the work at that facility or any other facility. Within

19 180 days after such solicitation, if the Secretary identifies

20 proposals worthy of Federal assistance, financial assist21 ance shall be awarded under this section competitively,

22 using peer review of proposals with appropriate protection

23 of proprietary information. The Secretary shall use appro24 priations authorized by this Act that are not allocated for

25 such awards to carry out research, development, and dem-
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1 onstration activities in accordance with the purposes of

2 this Act.

3 (c) COST SHARING.—(1) Except as otherwise pro4 vided in section 6, for research proposals funded under

5 this Act, the Secretary shall require a commitment from

6 non-Federal sources of at least 25 percent of the cost of

7 the proposed program. The Secretary may reduce or elimi8 nate the non-Federal requirement under this paragraph

9 if the Secretary determines that the research is of such

10 a purely basic or fundamental nature that a non-Federal

11 commitment is not obtainable.

12 (2) The Secretary shall require at least 50 percent

13 of the costs directly and specifically related to any develop14 ment or demonstration project under this Act to be pro15 vided from non-Federal sources.

16 (d) CERTIFICATIONS AND REQUIREMENTS.—Before

17 financial assistance is provided under this section or the

18 Spark M. Matsunaga Hydrogen Research, Development,

19 and Demonstration Act of 1990—

20 (1) the Secretary must ensure that providing

21 such financial assistance is consistent with the

22 Agreement on Subsidies and Countervailing Meas23 ures as approved in section 101 of the Uruguay

24 Round Agreements Act (19 U.S.C. 3511); and
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1 (2) industry participants must certify that they

2 have made reasonable efforts to obtain non-Federal

3 funding for the entire cost of the project, and that

4 such non-Federal funding could not be reasonably

5 obtained.

6 (e) DUPLICATION OF PROGRAMS.—The Secretary

7 shall not carry out any activities under this section that

8 unnecessarily duplicate activities carried out elsewhere by

9 the Federal Government or the private sector.

10 SEC. 6. HIGHLY INNOVATIVE TECHNOLOGIES.

11 Of the amounts made available for carrying out sec12 tion 5, up to 5 percent shall be used to support basic re13 search on highly innovative energy technologies. Such

14 amounts shall not be subject to the cost sharing require15 ments in section 5(c).

16 SEC. 7. TECHNOLOGY TRANSFER.

17 The Secretary shall foster the exchange of generic,

18 nonproprietary information and technology, developed

19 pursuant to section 5, among industry, academia, and the

20 Federal Government. The Secretary shall ensure that eco21 nomic benefits of such exchange of information and tech22 nology will accrue to the United States economy.

23 SEC. 8. REPORTS TO CONGRESS.

24 Within 18 months after the date of the enactment

25 of this Act, and annually thereafter, the Secretary shall
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1 transmit to the Congress a detailed report on the status

2 and progress of the Department’s hydrogen research and

3 development program, with particular emphasis on activi4 ties carried out pursuant to section 7 of this Act. Such

5 report shall include an analysis of the effectiveness of such

6 program, to be prepared and submitted by the Hydrogen

7 Technical Advisory Panel established under section 108

8 of the Spark M. Matsunaga Hydrogen Research, Develop9 ment, and Demonstration Act of 1990. Such Panel shall

10 also make recommendations for improvements to such pro11 gram if needed, including recommendations for additional

12 legislation.

13 SEC. 9. COORDINATION AND CONSULTATION.

14 (a) COORDINATION WITH OTHER FEDERAL AGEN15 CIES.—The Secretary shall coordinate all hydrogen re16 search and development activities within the Department,

17 and with the activities of other Federal agencies involved

18 in similar research and development, including the De19 partment of Defense, the Department of Transportation,

20 and the National Aeronautics and Space Administration.

21 Further, the Secretary shall pursue opportunities for co22 operation with such Federal entities.

23 (b) CONSULTATION.—The Secretary shall consult

24 with the Hydrogen Technical Advisory Panel established

25 under section 108 of the Spark M. Matsunaga Hydrogen
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1 Research, Development, and Demonstration Act of 1990

2 as necessary in carrying out this Act.

3 SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

4 (a) GENERAL AUUTHORIZATION.—There are author5 ized to be appropriated, to carry out the purposes of this

6 Act—

7 (1) $25,000,000 for fiscal year 1996;

8 (2) $35,000,000 for fiscal year 1997; and

9 (3) $40,000,000 for fiscal year 1998.

10 (b) RELATED AUTHORIZATIONS.—(1) For each of

11 the fiscal years 1996, 1997, and 1998, the total amount

12 which may be obligated for Energy Supply Research and

13 Development Activities shall not exceed the total amount

14 obligated for such activities in fiscal year 1995.

15 (2) Paragraph (1) of this subsection does not author16 ize the appropriation of any Federal funds.

17 SECTION 1. SHORT TITLE.

18 This Act may be cited as the ‘‘Hydrogen Future Act

19 of 1996’’.

20 SEC. 2. DEFINITIONS.

21 For purposes of title II and III—

22 (1) the term ‘‘Department’’ means the Depart23 ment of Energy; and

24 (2) the term ‘‘Secretary’’ means the Secretary of

25 Energy.
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1 TITLE I—HYDROGEN

2 SEC. 101. PURPOSES AND DEFINITIONS.

3 (a) Section 102(b)(1) of Public Law 101–566 (42

4 U.S.C. 12401(b)(1)) is amended to read as follows:

5 ‘‘(1) to direct the Secretary of Energy to conduct

6 a research, development, and demonstration program

7 leading to the production, storage, transport, and use

8 of hydrogen for industrial, residential transportation,

9 and utility applications;’’.

10 (b) Section 102(c) of Public Law 101–566 (42 U.S.C.

11 12401(c)) is amended)—

12 (1) in subsection (1) by striking ‘‘; and’’ and in13 serting ‘‘;’’;

14 (2) by redesignating subsection (2) as subsection

15 (3); and

16 (3) by inserting before subsection (3) (as redesig17 nated) the following new subsection:

18 ‘‘(2) ‘Department’ means the Department of En19 ergy; and’’.

20 SEC. 102. REPORTS TO CONGRESS.

21 (a) Section 103 of Public Law 101–566 (42 U.S.C.

22 12402) is amended to read as follows:

23 ‘‘§ 103. Report to Congress

24 ‘‘(a) REPORT.—Not later than January 1, 1999, the

25 Secretary shall transmit to Congress a detailed report on
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1 the status and progress of the programs authorized under

2 this Act.

3 ‘‘(b) ANALYSIS AND RECOMMENDATIONS.— A report

4 under subsection (a) shall include, in addition to any views

5 and recommendations of the Secretary—

6 ‘‘(1) an analysis of the effectiveness of the pro7 grams authorized under this chapter, to be prepared

8 and submitted to the Secretary by the Hydrogen

9 Technical Advisory Panel established under section

10 108 of this Act; and

11 ‘‘(2) recommendations of the Hydrogen Technical

12 Advisory Panel for any improvements in the program

13 that are needed, including recommendations for addi14 tional legislation.’’

15 (b) Section 108(d) of Public Law 101–566 (42 U.S.C.

16 12407(d)) is amended—

17 (1) by adding ‘‘and’’ at the end of paragraph

18 (1);

19 (2) by striking ‘‘; and’’ at the end of paragraph

20 (2) and inserting a period; and

21 (3) by striking paragraph (3).

22 SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.

23 (a) Section 104 of Public Law 101–566 (42 U.S.C.

24 12403) is amended to read as follows:
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1 ‘‘§ 104. Hydrogen research and development

2 ‘‘(a) PROGRAM.—The Secretary shall conduct a hydro3 gen research and development program relating to produc4 tion, storage, transportation, and use of hydrogen, with the

5 goal of enabling the private sector to demonstrate the tech6 nical feasibility of using hydrogen for industrial, residen7 tial, transportation, and utility applications.

8 ‘‘(b) PROGRAMMATIC CONSIDERATIONS.—In conduct9 ing the program authorized by this section, the Secretary

10 shall—

11 ‘‘(1) give particular attention to developing an

12 understanding and resolution of critical technical is13 sues preventing the introduction of hydrogen into the

14 marketplace;

15 ‘‘(2) initiate or accelerate existing research in

16 critical technical issues that will contribute to the de17 velopment of more economic hydrogen production and

18 use, including, but not limited to, critical technical

19 issues with respect to production (giving priority to

20 those production techniques that use renewable energy

21 resources as their primary source of energy for hydro22 gen production), liquefaction, transmission, distribu23 tion, storage, and use (including use of hydrogen in

24 surface transportation); and

25 ‘‘(3) survey private sector hydrogen activities

26 and take steps to ensure that research and develop-
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1 ment activities under this section do not displace or

2 compete with the privately funded hydrogen research

3 and development activities of United States industry.

4 ‘‘(c) TECHNOLOGIES.—The Secretary is authorized to

5 evaluate any reasonable new or improved technology, in6 cluding basic research on highly innovative energy tech7 nologies, that could lead or contribute to the development

8 of economic hydrogen production, storage, and utilization.

9 ‘‘(d) ISOLATED COMMUNITIES.—The Secretary is au10 thorized to evaluate any reasonable new or improved tech11 nology that could lead or contribute to, or demonstrate the

12 use of, advanced renewable energy systems or hybrid sys13 tems for use in isolated communities that currently im14 ported diesel fuel as the primary fuel for electric power pro15 duction.

16 ‘‘(e) INFORMATION.—The Secretary is authorized to

17 arrange for tests and demonstrations and to disseminate to

18 researchers and developers information, data, and other

19 materials necessary to support the research and develop20 ment activities authorized under this section and other ef21 forts authorized under this chapter, consistent with section

22 106 of this Act.

23 ‘‘(f) PROJECT SELECTION.—The Secretary shall carry

24 out the research and development activities authorized

25 under this section only through the funding of research and
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1 development proposals submitted by interested persons ac2 cording to such procedures as the Secretary may require

3 and evaluated on a competitive basis using peer review.

4 Such funding shall be in the form of a grant agreement,

5 procurement contract, or cooperative agreement (as those

6 terms are used in chapter 63 of title 31, United States

7 Code).

8 ‘‘(g) NON-FEDERAL FUNDING.—The Secretary shall

9 not consider a proposal submitted by a person from indus10 try unless the proposal contains a certification that reason11 able efforts to obtain non-Federal funding for the entire cost

12 of the project have been made, and that such non-Federal

13 funding could not be reasonably obtained. As appropriate,

14 the Secretary shall require a commitment from non-Federal

15 sources of at least 50 percent of the cost of the development

16 portion of such a proposal.

17 ‘‘(h) UNNECESSARY DUPLICATION.—The Secretary

18 shall not carry out any activities under this section that

19 unnecessarily duplicate activities carried out elsewhere by

20 the Federal Government or industry.

21 ‘‘(i) GATT.—The Secretary shall establish, after con22 sultation with other Federal agencies, terms and conditions

23 under which Federal funding will be provided under this

24 chapter that are consistent with the Agreement on Subsidies

25 and Countervailing Measures referred to in section
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1 101(d)(12) of the Uruguay Round Agreement Act (19

2 U.S.C. 3511(d)(12)).’’.

3 (b)(1) Section 2026(a) of the Energy Policy Act of

4 1992 (42 U.S.C. 13436(a)) is amended by striking ‘‘, in

5 accordance with sections 3001 and 3002 of this Act,’’.

6 (2) Effective October 1, 1998, section 2026 of the En7 ergy Policy Act of 1992 (42 U.S.C. 13436) is repealed.

8 SEC. 104. DEMONSTRATIONS.

9 Section 105 of Public Law 101–566 (42 U.S.C. 12404)

10 is amended by adding at the end the following new sub11 section:

12 ‘‘(c) COST SHARING.—The Secretary shall require a

13 commitment from non-Federal sources of at least 50 percent

14 of the cost of any demonstration conducted under this sec15 tion.’’.

16 SEC. 105. TECHNOLOGY TRANSFER.

17 Section 106(b) of Public Law 101–566 (42 U.S.C.

18 12405(b)) is amended by adding to the end of the subsection

19 the following: ‘‘The Secretary shall also foster the exchange

20 of generic, nonproprietary information and technology, de21 veloped pursuant to this chapter, among industry, aca22 demia, and the Federal Government, to help the United

23 States economy attain the economic benefits of this informa24 tion and technology.’’.
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1 SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

2 Section 109 of Public Law 101–566 (42 U.S.C. 12408)

3 is amended—

4 (1) by striking ‘‘to other Acts’’ and inserting

5 ‘‘under other Acts’’;

6 (2) by striking ‘‘and’’ from the end of the para7 graph (2);

8 (3) by striking the period from the end of para9 graph (3) and inserting ‘‘;’’; and

10 (4) by adding at the end of the section the follow11 ing:

12 ‘‘(4) $14,500,000 for fiscal year 1996;

13 ‘‘(5) $20,000,000 for fiscal year 1997;

14 ‘‘(6) $25,000,000 for fiscal year 1998;

15 ‘‘(7) $30,000,000 for fiscal year 1999;

16 ‘‘(8) $35,000,000 for fiscal year 2000; and

17 ‘‘(9) $40,000,000 for fiscal year 2001.’’.

18 TITLE II—FUEL CELLS

19 SEC. 201. INTEGRATION OF FUEL CELLS WITH HYDROGEN

20 PRODUCTION SYSTEMS.

21 (a) Not later than 180 days after the date of enactment

22 of this section, and subject to the availability of appropria23 tions made specifically for this section, the Secretary of En24 ergy shall solicit proposals for projects to prove the feasibil25 ity of integrating fuel cells with—
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1 (1) photovoltaic systems for hydrogen production;

2 or

3 (2) systems for hydrogen production from solid

4 waste via gasification or steam reforming.

5 (b) Each proposal submitted in response to the solicita6 tion under this section shall be evaluated on a competitive

7 basis using peer review. The Secretary is not required to

8 make an award under this section in the absence of a meri9 torious proposal.

10 (c) The Secretary shall give preference, in making an

11 award under this section, to proposals that—

12 (1) are submitted jointly from consortia includ13 ing academic institutions, industry, State or local

14 governments, and Federal laboratories; and

15 (2) reflect proven experience and capability with

16 technologies relevant to the systems described in sub17 sections (a)(1) and (a)(2).

18 (d) In the case of a proposal involving development

19 or demonstration, the Secretary shall require a commitment

20 from non-Federal sources of at least 50 percent of the cost

21 of the development or demonstration portion of the proposal.

22 (e) The Secretary shall establish, after consultation

23 with other Federal agencies, terms and conditions under

24 which Federal funding will be provided under this title that

25 are consistent with the Agreement on Subsidies and Coun-
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1 tervailing Measures referred to in section 101(d)(12) of the

2 Uruguay Round Agreement Act (19 U.S.C. 3511(d)(12)).

3 SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

4 There is authorized to be appropriated, for activities

5 under this section, a total of $50,000,000 for fiscal years

6 1997 and 1998, to remain available until September 30,

7 1999.

8 TITLE III—DOE SCIENTIFIC AND

9 TECHNICAL PROGRAM QUALITY

10 SEC. 301. TEMPORARY APPOINTMENTS FOR SCIENTIFIC

11 AND TECHNICAL EXPERTS IN DEPARTMENT

12 OF ENERGY RESEARCH AND DEVELOPMENT

13 PROGRAMS.

14 (a) The Secretary, utilizing authority under other ap15 plicable law and the authority of this section, may appoint

16 for a limited term, or on a temporary basis, scientists, engi17 neers, and other technical and professional personnel on

18 leave of absence from academic, industrial, or research in19 stitutions to work for the Department.

20 (b) The Department may pay, to the extent authorized

21 for certain other Federal employees by section 5723 of title

22 5, United States Code, travel expenses for any individual

23 appointed for a limited term or on a temporary basis and

24 transportation expenses of his or her immediate family and

25 his or her household goods and personal effects from that
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1 individual’s residence at the time of selection or assignment

2 to his or her duty station. The Department may pay such

3 travel expenses to the same extent for such an individual’s

4 return to the former place of residence from his or her duty

5 station, upon separation from the Federal service following

6 an agreed period of service. The Department may also pay

7 a per diem allowance at a rate not to exceed the daily

8 amounts prescribed under section 5702 of title 5 to such

9 an individual, in lieu of transportation expenses of the im10 mediate family and household goods and personal effects,

11 for the period of his or her employment with the Depart12 ment. Notwithstanding any other provision of law, the em13 ployer’s contribution to any retirement, life insurance, or

14 health benefit plan for an individual appointed for a term

15 of one year or less, which could be extended for no more

16 than one additional year, may be made or reimbursed from

17 appropriations available to the Department.

Passed the House of Representatives May 2, 1995.

Attest: ROBIN H. CARLE,

Clerk.