Hydrogen Future Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hydrogen Future 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 can be burned much more cleanly 
        than conventional fuels;
            (4) hydrogen production efficiency is 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 
        initiative on efficient hydrogen fuel production and use should 
        be maintained; and
            (6) the current Federal effort to develop hydrogen as a 
        fuel is inadequate.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (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; and
            (2) to provide advice from academia and the private sector 
        in the implementation of the Department of Energy's hydrogen 
        research, development, and demonstration program to ensure that 
        economic benefits of the program accrue to the United States.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) 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 
        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, 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 
        the privately funded hydrogen activities of the United States 
        industry.
    (b) Schedule.--
            (1) Solicitation.--Not later than 180 days after the date 
        of the 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 one or more proposals 
        that are worthy of Federal assistance, the Secretary shall 
        award financial assistance under this section competitively, 
        using peer review 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.--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.
    (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. 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.
    (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. 7. 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 if needed, including recommendations for 
        additional legislation.
            (3) Repeal of unnecessary provision.--The Spark M. 
        Matsunaga Hydrogen Research, Development, and Demonstration Act 
        of 1990 (42 U.S.C. 1401 et seq.) is amended--
                    (A) by striking section 103;
                    (B) by redesignating sections 104, 105, 106, 107, 
                108, and 109 as sections 103, 104, 105, 106, 107, and 
                108, respectively;
                    (C) in section 103 (as redesignated)--
                            (i) in subsection (a) by striking ``, 
                        consistent with the 5-year comprehensive 
                        program management plan under section 103,''; 
                        and
                            (ii) in subsection (e) by striking ``106'' 
                        and inserting ``105'';
                    (D) in section 104(b) (as redesignated) by striking 
                ``104'' and inserting ``103'';
                    (E) in section 105(a) (as redesignated) by striking 
                ``108'' and inserting ``107'';
                    (F) in section 106(c) (as redesignated) by striking 
                ``108'' and inserting ``107''; and
                    (G) in section 107(d) (as redesignated)--
                            (i) by adding ``and'' at the end of 
                        paragraph (1);
                            (ii) by striking ``; and'' at the end of 
                        paragraph (2) and inserting a period; and
                            (iii) by striking paragraph (3).

SEC. 8. 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. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out 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) Limitation on Authority to Obligate Funds.--
            (1) Limitation.--In each of fiscal years 1996, 1997, and 
        1998, the total amount that 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) Rule of construction.--Paragraph (1) shall not be 
        construed as authorizing the appropriation of any Federal 
        funds.

Summary: Hydrogen Future Act of 1995 - Directs the Secretary of Energy to provide for a hydrogen energy research, development and demonstration 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, 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 U.S. industry. 
(Sec. 5) Sets forth a proposal solicitation schedule.  Directs the Secretary to require a specified cost-sharing commitment from non-Federal sources. 
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. 
(Sec. 6) 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 Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990. 
(Sec. 9) Authorizes appropriations.