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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
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,
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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-
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-
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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-
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
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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
(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.
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(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
transmit to the Congress a detailed report on the status
and progress of the Department’s hydrogen research and
development program, with particular emphasis on activi-
ties carried out pursuant to section 7 of this Act. Such
report shall include an analysis of the effectiveness of such
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program, to be prepared and submitted by the Hydrogen
Technical Advisory Panel established under section 108
of the Spark M. Matsunaga Hydrogen Research, Develop-
ment, and Demonstration Act of 1990. Such Panel shall
also make recommendations for improvements to such pro-
gram if needed, including recommendations for additional
legislation.
SEC. 9. COORDINATION AND CONSULTATION.
(a) COORDINATION WITH OTHER FEDERAL AGEN-
CIES.—The Secretary shall coordinate all hydrogen re-
search and development activities within the Department,
and with the activities of other Federal agencies involved
in similar research and development, including the De-
partment of Defense, the Department of Transportation,
and the National Aeronautics and Space Administration.
Further, the Secretary shall pursue opportunities for co-
operation with such 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
as necessary in carrying out this Act.