Hydrogen for Industry Act of 2021
Bill: S.3112 | Sponsor: Sen. Coons, Christopher A. (D-DE)
Policy area: Energy

Summary:
Hydrogen for Industry Act of 2021
This bill requires the Department of Energy (DOE) to establish grant programs to support the use of hydrogen in energy. Specifically, DOE must establish a grant program for projects that demonstrate the uses of hydrogen in heavy industry (e.g., steel, cement, glass, and chemical manufacturing). It also directs DOE to establish a grant program for (1) carrying out projects that demonstrate the end uses of hydrogen; (2) constructing a new commercial-scale facility that will use hydrogen as a fuel or feedstock; or (3) retooling, retrofitting, or expanding an existing facility to enable the use of hydrogen as a fuel or feedstock in industrial end-use applications of hydrogen.

To amend the Energy Policy Act of 2005 to establish a Hydrogen 
 Technologies for Heavy Industry Grant Program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hydrogen for Industry Act of 2021''.

SEC. 2. HYDROGEN TECHNOLOGIES FOR HEAVY INDUSTRY GRANT PROGRAM.

    (a) Emission Reduction Program.--Subtitle F of title IX of the 
Energy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended by 
adding at the end the following:

``SEC. 969E. HYDROGEN TECHNOLOGIES FOR HEAVY INDUSTRY GRANT PROGRAM.

    ``(a) Definition of Low-Income or Disadvantaged Community.--The 
term `low-income or disadvantaged community' means a community 
(including a city, town, county, or reasonably isolated and divisible 
segment of a larger municipality) with an annual median household 
income that is less than 100 percent of the statewide annual median 
household income for the State in which the community is located, 
according to the most recent decennial census.
    ``(b) Program.--Not later than 180 days after the date of enactment 
of the Hydrogen for Industry Act of 2021, the Secretary shall establish 
a program, to be known as the `Hydrogen Technologies for Heavy Industry 
Grant Program' (referred to in this section as the `Program'), under 
which the Secretary shall award grants to demonstrate industrial end-
use applications of hydrogen for--
            ``(1) iron, steel, and metals manufacturing;
            ``(2) cement manufacturing;
            ``(3) glass manufacturing;
            ``(4) ammonia and fertilizer production;
            ``(5) industrial food processes;
            ``(6) production of synthetic fuels from hydrogen, 
        including with carbon oxides;
            ``(7) fuel refining, including biorefining;
            ``(8) chemical synthesis, including synthesis of methanol 
        and ethylene;
            ``(9) process heaters, including hydrogen combustion with 
        environmental controls; and
            ``(10) any other use of hydrogen for heavy industry, as 
        determined by the Secretary.
    ``(c) Purpose.--The purpose of the Program is to support the 
adoption of hydrogen as an emissions reduction technology for heavy 
industry, including in applications where hydrogen is blended with 
other fuels or feedstocks.
    ``(d) Demonstration Projects and Other Authorized Projects.--
            ``(1) In general.--The Secretary shall provide grants to 
        commercial-scale demonstration projects for end-use 
        applications of hydrogen and other authorized projects, as 
        described in paragraph (5).
            ``(2) Amount of grant.--The amount of a grant provided 
        under this subsection shall be not more than $400,000,000.
            ``(3) Application.--An entity seeking a grant to conduct a 
        demonstration project or other authorized project under this 
        subsection shall submit to the Secretary an application at such 
        time, in such manner, and containing such information as the 
        Secretary may require, including a description of the manner in 
        which the project--
                    ``(A) will contribute to the reduction of carbon 
                emissions at the applicable facility; and
                    ``(B) in the case of a project for industrial end-
                use application that already uses hydrogen at scale, 
                will reduce or avoid emissions of greenhouse gases.
            ``(4) Selection.--
                    ``(A) Limitations.--The Secretary shall only 
                provide a grant under this subsection after reviewing 
                each applicant and application under paragraph (3) with 
                respect to--
                            ``(i) the financial strength of the 
                        applicant;
                            ``(ii) the proposed construction schedule;
                            ``(iii) the market risk of the technology 
                        that the applicant seeks to demonstrate, as 
                        applicable; and
                            ``(iv) the contractor history of the 
                        applicant.
                    ``(B) Priority.--In providing grants under this 
                subsection, the Secretary shall give priority to 
                projects that will provide greater net impact in 
                avoiding or reducing emissions of greenhouse gases.
                    ``(C) Other considerations.--In providing grants 
                under this subsection, the Secretary shall, to the 
                maximum extent practicable, award grants for projects 
                that--
                            ``(i) represent a variety of end uses of 
                        hydrogen;
                            ``(ii) will use at least 50 percent 
                        hydrogen blends;
                            ``(iii) will generate the greatest benefit 
                        to low-income or disadvantaged communities; and
                            ``(iv) will maximize creation or retention 
                        of domestic jobs and provide the highest job 
                        quality.
            ``(5) Authorized projects.--Grant amounts provided under 
        this subsection may be used--
                    ``(A) to carry out demonstration projects for end 
                uses of hydrogen;
                    ``(B) to construct a new commercial-scale facility 
                that will use hydrogen as a fuel or feedstock; or
                    ``(C) to retool, retrofit, or expand an existing 
                facility determined to be qualified by the Secretary to 
                enable use of hydrogen as a fuel or feedstock in 
                industrial end-use applications of hydrogen, including 
                at multiple points within a larger facility.
            ``(6) Requirements.--A demonstration project receiving a 
        grant under this subsection shall--
                    ``(A) use technologies that have completed pilot-
                scale testing or the equivalent, as determined by the 
                Secretary;
                    ``(B) on completion, demonstrate hydrogen 
                technologies used by heavy industry; and
                    ``(C) conduct hydrogen leakage monitoring, 
                reporting, and verification programs and leak detection 
                and repair programs.
            ``(7) Cost sharing.--The non-Federal share of the cost of a 
        demonstration project carried out using a grant under this 
        subsection shall be not less than 20 percent.
            ``(8) Engineering and design studies.--The Secretary may 
        fund front-end engineering and design studies in addition to, 
        or in advance of, providing a grant for a demonstration project 
        or other authorized project under this subsection.
    ``(e) Applicability.--No technology, or level of emission 
reduction, shall be treated as adequately demonstrated for purposes of 
section 111 of the Clean Air Act (42 U.S.C. 7411), achievable for 
purposes of best available control technologies (as defined in section 
169 of that Act (42 U.S.C. 7479)), or achievable in practice for 
purposes of the terms defined in section 171 of that Act (42 U.S.C. 
7501) solely by reason of the identification of that technology or 
level of emission reduction in programs established under this Act.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out the Program $1,200,000,000 
for the period of fiscal years 2022 through 2026.''.
    (b) Clerical Amendment.--The table of contents of the Energy Policy 
Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by inserting 
after the item relating to section 969D the following:

``Sec. 969E. Hydrogen Technologies for Heavy Industry Grant Program.''.

SEC. 3. STUDY.

    (a) In General.--Not later than 270 days after the date of 
enactment of this Act, the Secretary of Energy, the Secretary of 
Commerce, and the Secretary of Transportation shall jointly conduct and 
submit to Congress a report describing the results of a study--
            (1) to examine the potential for emissions reductions at 
        industrial facilities through hydrogen applications, 
        including--
                    (A) the potential use of levelized cost of carbon 
                abatement, or a similar metric, in analyzing industrial 
                uses of hydrogen; and
                    (B) the feasibility and impact of incorporating 
                levelized cost of carbon abatement to compare the costs 
                of technology options to reduce emissions across a 
                range of industrial applications;
            (2) to fully address existing challenges with respect to 
        ensuring the safe use and handling of hydrogen and hydrogen-
        based fuels in industrial systems, including health and 
        environmental impacts associated with the leakage of hydrogen 
        and hydrogen carriers;
            (3) to identify and evaluate the feasibility, safety, and 
        best practices of the use of hydrogen and ammonia as industrial 
        fuel and feedstock;
            (4) to examine the feasibility of blending increasing 
        levels of hydrogen with natural gas to supplement process heat 
        requirements;
            (5) to examine the environmental impacts of hydrogen 
        combustion in hydrogen-fueled gas turbines as pure hydrogen or 
        at different ratios if used in blended fuel; and
            (6) to identify and evaluate considerations for transport 
        and storage of hydrogen and hydrogen carriers, including--
                    (A) at industrial facilities;
                    (B) in salt caverns, hard rock caverns, and other 
                dedicated geological storage systems; and
                    (C) in pipelines.
    (b) Requirements.--In conducting the study under subsection (a), 
the Secretary of Energy and the Secretary of Commerce shall--
            (1) take into account lessons learned from demonstration 
        projects in other industries and projects in other countries; 
        and
            (2) evaluate the applicability of the lessons described in 
        paragraph (1) to the use of hydrogen in industrial 
        applications.
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