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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Hydrogen Future Act
of 1995’’.
SEC. 2. FINDINGS.
The Congress finds that—
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(1) fossil fuels, the main energy source of the
present, have provided this country with tremendous
supply but are limited and polluting;
(2) additional basic research and development
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 can
be burned much more cleanly than conventional
fuels;
(4) hydrogen production efficiency is a major
technical barrier to society collectively benefiting
from one of the great energy sources of the future;
(5) an aggressive, results-oriented, multiyear re-
search initiative on efficient hydrogen fuel produc-
tion and use should continue; and
(6) the current Federal effort to develop hydro-
gen as a fuel is inadequate.
SEC. 3. PURPOSES.
The purposes of this Act are—
(1) to provide for a basic research, develop-
ment, and demonstration program leading to the
production, storage, transport, and use of hydrogen
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for industrial, residential, transportation, and utility
applications; and
(2) to provide for advice from academia and the
private sector in the implementation of the Depart-
ment of Energy hydrogen research, development,
and demonstration program to ensure that economic
benefits of the program accrue to the United States.
SEC. 4. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘demonstration’’ means a valida-
tion of the technical feasibility of a theory or proc-
ess;
(2) the term ‘‘Department’’ means the Depart-
ment of Energy; and
(3) the term ‘‘Secretary’’ means the Secretary
of Energy.
SEC. 5. RESEARCH AND DEVELOPMENT.
(a) AUTHORIZED ACTIVITIES.—Pursuant to this sec-
tion, the Spark M. Matsunaga Hydrogen Research, Devel-
opment, and Demonstration Act of 1990 and the Energy
Policy Act of 1992, and in accordance with the purposes
of this Act, the Secretary shall provide for a hydrogen en-
ergy basic research, development, and demonstration pro-
gram relating to production, storage, transportation, and
use of hydrogen, with the goal of enabling the private sec-
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tor to demonstrate the technical feasibility of using hydro-
gen for industrial, residential, transportation, and utility
applications. In establishing priorities for Federal funding
under this section, the Secretary shall survey private sec-
tor hydrogen activities and take steps to ensure that ac-
tivities under this section do not displace or compete with
the privately funded hydrogen activities of United States
industry.
(b) SCHEDULE.—Within 180 days after the date of
the enactment of the later of this Act or an Act providing
appropriations for programs authorized by this Act, the
Secretary shall solicit proposals from all interested parties
for carrying out the research, development, and dem-
onstration activities authorized under this section. The
Secretary may consider a proposal from a contractor who
manages and operates a Department facility under con-
tract with the Department, and the contractor may per-
form the work at that facility or any other facility. Within
180 days after such solicitation, if the Secretary identifies
proposals worthy of Federal assistance, financial assist-
ance shall be awarded under this section competitively,
using peer review of proposals with appropriate protection
of proprietary information. The Secretary shall use appro-
priations authorized by this Act that are not allocated for
such awards to carry out research, development, and dem-
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onstration activities in accordance with the purposes of
this Act.
(c) COST SHARING.—(1) Except as otherwise pro-
vided in section 6, for research proposals funded under
this Act, the Secretary shall require a commitment from
non-Federal sources of at least 25 percent of the cost of
the proposed program. The Secretary may reduce or elimi-
nate the non-Federal requirement under this paragraph
if the Secretary determines that the research is of such
a purely basic or fundamental nature that a non-Federal
commitment is not obtainable.
(2) The Secretary shall require at least 50 percent
of the costs directly and specifically related to any develop-
ment or demonstration project under this Act to be pro-
vided from non-Federal sources.
(d) CERTIFICATIONS AND REQUIREMENTS.—Before
financial assistance is provided under this section or the
Spark M. Matsunaga Hydrogen Research, Development,
and Demonstration Act of 1990—
(1) the Secretary must ensure that providing
such financial assistance is consistent with the
Agreement on Subsidies and Countervailing Meas-
ures as approved in section 101 of the Uruguay
Round Agreements Act (19 U.S.C. 3511); and
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(2) industry participants must certify 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.
(e) DUPLICATION
OF PROGRAMS.—The Secretary
shall not carry out any activities under this section that
unnecessarily duplicate activities carried out elsewhere by
the Federal Government or the private sector.
SEC. 6. HIGHLY INNOVATIVE TECHNOLOGIES.
Of the amounts made available for carrying out sec-
tion 5, up to 5 percent shall be used to support basic re-
search on highly innovative energy technologies. Such
amounts shall not be subject to the cost sharing require-
ments in section 5(c).
SEC. 7. TECHNOLOGY TRANSFER.
The Secretary shall foster the exchange of generic,
nonproprietary information and technology, developed
pursuant to section 5, among industry, academia, and the
Federal Government. The Secretary shall ensure that eco-
nomic benefits of such exchange of information and tech-
nology will accrue to the United States economy.
SEC. 8. REPORTS TO CONGRESS.
Within 18 months after the date of the enactment
of this Act, and annually thereafter, the Secretary shall
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Research, Development, and Demonstration Act of 1990
as necessary in carrying out this Act.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
(a) GENERAL AUUTHORIZATION.—There are author-
ized to be appropriated, to carry out the purposes of this
Act—
(1) $25,000,000 for fiscal year 1996;
(2) $35,000,000 for fiscal year 1997; and
(3) $40,000,000 for fiscal year 1998.
(b) RELATED AUTHORIZATIONS.—(1) For each of
the fiscal years 1996, 1997, and 1998, the total amount
which may be obligated for Energy Supply Research and
Development Activities shall not exceed the total amount
obligated for such activities in fiscal year 1995.
(2) Paragraph (1) of this subsection does not author-
ize the appropriation of any Federal funds.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Hydrogen Future Act
of 1996’’.
SEC. 2. DEFINITIONS.
For purposes of title II and III—
(1) the term ‘‘Department’’ means the Depart-
ment of Energy; and
(2) the term ‘‘Secretary’’ means the Secretary of
Energy.
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TITLE I—HYDROGEN
SEC. 101. PURPOSES AND DEFINITIONS.
(a) Section 102(b)(1) of Public Law 101–566 (42
U.S.C. 12401(b)(1)) is amended to read as follows:
‘‘(1) to direct the Secretary of Energy to conduct
a research, development, and demonstration program
leading to the production, storage, transport, and use
of hydrogen for industrial, residential transportation,
and utility applications;’’.
(b) Section 102(c) of Public Law 101–566 (42 U.S.C.
12401(c)) is amended)—
(1) in subsection (1) by striking ‘‘; and’’ and in-
serting ‘‘;’’;
(2) by redesignating subsection (2) as subsection
(3); and
(3) by inserting before subsection (3) (as redesig-
nated) the following new subsection:
‘‘(2) ‘Department’ means the Department of En-
ergy; and’’.
SEC. 102. REPORTS TO CONGRESS.
(a) Section 103 of Public Law 101–566 (42 U.S.C.
12402) is amended to read as follows:
‘‘§ 103. Report to Congress
‘‘(a) REPORT.—Not later than January 1, 1999, the
Secretary shall transmit to Congress a detailed report on
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the status and progress of the programs authorized under
this Act.
‘‘(b) ANALYSIS AND RECOMMENDATIONS.— A report
under subsection (a) shall include, in addition to any views
and recommendations of the Secretary—
‘‘(1) an analysis of the effectiveness of the pro-
grams authorized under this chapter, to be prepared
and submitted to the Secretary by the Hydrogen
Technical Advisory Panel established under section
108 of this Act; and
‘‘(2) recommendations of the Hydrogen Technical
Advisory Panel for any improvements in the program
that are needed, including recommendations for addi-
tional legislation.’’
(b) Section 108(d) of Public Law 101–566 (42 U.S.C.
12407(d)) is amended—
(1) by adding ‘‘and’’ at the end of paragraph
(1);
(2) by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period; and
(3) by striking paragraph (3).
SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.
(a) Section 104 of Public Law 101–566 (42 U.S.C.
12403) is amended to read as follows:
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‘‘§ 104. Hydrogen research and development
‘‘(a) PROGRAM.—The Secretary shall conduct a hydro-
gen research and development program relating to produc-
tion, storage, transportation, and use of hydrogen, with the
goal of enabling the private sector to demonstrate the tech-
nical feasibility of using hydrogen for industrial, residen-
tial, transportation, and utility applications.
‘‘(b) PROGRAMMATIC CONSIDERATIONS.—In conduct-
ing the program authorized by this section, the Secretary
shall—
‘‘(1) give particular attention to developing an
understanding and resolution of critical technical is-
sues preventing the introduction of hydrogen into the
marketplace;
‘‘(2) initiate or accelerate existing research in
critical technical issues that will contribute to the de-
velopment of more economic hydrogen production and
use, including, but not limited to, critical technical
issues with respect to production (giving priority to
those production techniques that use renewable energy
resources as their primary source of energy for hydro-
gen production), liquefaction, transmission, distribu-
tion, storage, and use (including use of hydrogen in
surface transportation); and
‘‘(3) survey private sector hydrogen activities
and take steps to ensure that research and develop-
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ment activities under this section do not displace or
compete with the privately funded hydrogen research
and development activities of United States industry.
‘‘(c) TECHNOLOGIES.—The Secretary is authorized to
evaluate any reasonable new or improved technology, in-
cluding basic research on highly innovative energy tech-
nologies, that could lead or contribute to the development
of economic hydrogen production, storage, and utilization.
‘‘(d) ISOLATED COMMUNITIES.—The Secretary is au-
thorized to evaluate any reasonable new or improved tech-
nology that could lead or contribute to, or demonstrate the
use of, advanced renewable energy systems or hybrid sys-
tems for use in isolated communities that currently im-
ported diesel fuel as the primary fuel for electric power pro-
duction.
‘‘(e) INFORMATION.—The Secretary is authorized to
arrange for tests and demonstrations and to disseminate to
researchers and developers information, data, and other
materials necessary to support the research and develop-
ment activities authorized under this section and other ef-
forts authorized under this chapter, consistent with section
106 of this Act.
‘‘(f) PROJECT SELECTION.—The Secretary shall carry
out the research and development activities authorized
under this section only through the funding of research and