[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 655 Reported in Senate (RS)]





                                                       Calendar No. 595

104th CONGRESS

  2d Session

                               H. R. 655

_______________________________________________________________________

                                 AN ACT

To authorize basic research, development, and demonstration on hydrogen 
                   as a fuel, and for other purposes.

_______________________________________________________________________

                           September 13, 1996

                       Reported with an amendment





                                                       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 Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Hydrogen Future Act of 
1995''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    The Congress finds that--</DELETED>
        <DELETED>    (1) fossil fuels, the main energy source of the 
        present, have provided this country with tremendous supply but 
        are limited and polluting;</DELETED>
        <DELETED>    (2) additional basic research and development are 
        needed to encourage private sector investment in development of 
        new and better energy sources and enabling 
        technologies;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (4) hydrogen production efficiency is a major 
        technical barrier to society collectively benefiting from one 
        of the great energy sources of the future;</DELETED>
        <DELETED>    (5) an aggressive, results-oriented, multiyear 
        research initiative on efficient hydrogen fuel production and 
        use should continue; and</DELETED>
        <DELETED>    (6) the current Federal effort to develop hydrogen 
        as a fuel is inadequate.</DELETED>

<DELETED>SEC. 3. PURPOSES.</DELETED>

<DELETED>    The purposes of this Act are--</DELETED>
        <DELETED>    (1) to provide for a basic research, development, 
        and demonstration program leading to the production, storage, 
        transport, and use of hydrogen for industrial, residential, 
        transportation, and utility applications; and</DELETED>
        <DELETED>    (2) to provide for advice from academia and the 
        private sector in the implementation of the Department of 
        Energy hydrogen research, development, and demonstration 
        program to ensure that economic benefits of the program accrue 
        to the United States.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    For purposes of this Act--</DELETED>
        <DELETED>    (1) the term ``demonstration'' means a validation 
        of the technical feasibility of a theory or process;</DELETED>
        <DELETED>    (2) the term ``Department'' means the Department 
        of Energy; and</DELETED>
        <DELETED>    (3) the term ``Secretary'' means the Secretary of 
        Energy.</DELETED>

<DELETED>SEC. 5. RESEARCH AND DEVELOPMENT.</DELETED>

<DELETED>    (a) Authorized Activities.--Pursuant to this section, the 
Spark M. Matsunaga Hydrogen Research, Development, 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 
energy basic 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 technical 
feasibility of using hydrogen for industrial, residential, 
transportation, and utility applications. 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 United States 
industry.</DELETED>
<DELETED>    (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 demonstration activities authorized under this 
section. The Secretary may consider a proposal from a contractor who 
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. Within 180 days after such solicitation, if the 
Secretary identifies proposals worthy of Federal assistance, financial 
assistance shall be awarded under this section competitively, using 
peer review of proposals with appropriate protection of proprietary 
information. The Secretary shall use appropriations authorized by this 
Act that are not allocated for such awards to carry out research, 
development, and demonstration activities in accordance with the 
purposes of this Act.</DELETED>
<DELETED>    (c) Cost Sharing.--(1) Except as otherwise provided 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 eliminate 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.</DELETED>
<DELETED>    (2) The Secretary shall require at least 50 percent of the 
costs directly and specifically related to any development or 
demonstration project under this Act to be provided from non-Federal 
sources.</DELETED>
<DELETED>    (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--
</DELETED>
        <DELETED>    (1) the Secretary must ensure that providing such 
        financial assistance is consistent with the Agreement on 
        Subsidies and Countervailing Measures as approved in section 
        101 of the Uruguay Round Agreements Act (19 U.S.C. 3511); 
        and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 6. HIGHLY INNOVATIVE TECHNOLOGIES.</DELETED>

<DELETED>    Of the amounts made available for carrying out section 5, 
up to 5 percent shall be used to support basic research on highly 
innovative energy technologies. Such amounts shall not be subject to 
the cost sharing requirements in section 5(c).</DELETED>

<DELETED>SEC. 7. TECHNOLOGY TRANSFER.</DELETED>

<DELETED>    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 economic benefits of such exchange of 
information and technology will accrue to the United States 
economy.</DELETED>

<DELETED>SEC. 8. REPORTS TO CONGRESS.</DELETED>

<DELETED>    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 activities carried out pursuant to section 7 of this Act. 
Such report shall include an analysis of the effectiveness of such 
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. Such 
Panel shall also make recommendations for improvements to such program 
if needed, including recommendations for additional 
legislation.</DELETED>

<DELETED>SEC. 9. COORDINATION AND CONSULTATION.</DELETED>

<DELETED>    (a) Coordination With Other Federal Agencies.--The 
Secretary shall coordinate all hydrogen research and development 
activities within the Department, and with the activities of other 
Federal agencies involved in similar research and development, 
including the Department of Defense, the Department of Transportation, 
and the National Aeronautics and Space Administration. Further, the 
Secretary shall pursue opportunities for cooperation with such Federal 
entities.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 10. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    (a) General Auuthorization.--There are authorized to be 
appropriated, to carry out the purposes of this Act--</DELETED>
        <DELETED>    (1) $25,000,000 for fiscal year 1996;</DELETED>
        <DELETED>    (2) $35,000,000 for fiscal year 1997; 
        and</DELETED>
        <DELETED>    (3) $40,000,000 for fiscal year 1998.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (2) Paragraph (1) of this subsection does not authorize 
the appropriation of any Federal funds.</DELETED>

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 Department of Energy; 
        and
            (2) the term ``Secretary'' means the Secretary of Energy.

                           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 inserting 
        ``;'';
            (2) by redesignating subsection (2) as subsection (3); and
            (3) by inserting before subsection (3) (as redesignated) 
        the following new subsection:
            ``(2) `Department' means the Department of Energy; 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:
``Sec. 103. Report to Congress
    ``(a) Report.--Not later than January 1, 1999, the Secretary shall 
transmit to Congress a detailed report on 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 programs 
        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 additional 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:
``Sec. 104. Hydrogen research and development
    ``(a) Program.--The Secretary shall conduct a hydrogen research and 
development program relating to production, storage, transportation, 
and use of hydrogen, with the goal of enabling the private sector to 
demonstrate the technical feasibility of using hydrogen for industrial, 
residential, transportation, and utility applications.
    ``(b) Programmatic Considerations.--In conducting the program 
authorized by this section, the Secretary shall--
            ``(1) give particular attention to developing an 
        understanding and resolution of critical technical issues 
        preventing the introduction of hydrogen into the marketplace;
            ``(2) initiate or accelerate existing research in critical 
        technical issues that will contribute to the development 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 hydrogen production), liquefaction, transmission, 
        distribution, 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 development 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, including basic research on 
highly innovative energy technologies, that could lead or contribute to 
the development of economic hydrogen production, storage, and 
utilization.
    ``(d) Isolated Communities.--The Secretary is authorized to 
evaluate any reasonable new or improved technology that could lead or 
contribute to, or demonstrate the use of, advanced renewable energy 
systems or hybrid systems for use in isolated communities that 
currently imported diesel fuel as the primary fuel for electric power 
production.
    ``(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 development activities authorized under this section 
and other efforts 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 development proposals submitted by 
interested persons according to such procedures as the Secretary may 
require and evaluated on a competitive basis using peer review. Such 
funding shall be in the form of a grant agreement, procurement 
contract, or cooperative agreement (as those terms are used in chapter 
63 of title 31, United States Code).
    ``(g) Non-Federal Funding.--The Secretary shall not consider a 
proposal submitted by a person from industry unless the proposal 
contains a certification that reasonable efforts to obtain non-Federal 
funding for the entire cost of the project have been made, and that 
such non-Federal funding could not be reasonably obtained. As 
appropriate, the Secretary shall require a commitment from non-Federal 
sources of at least 50 percent of the cost of the development portion 
of such a proposal.
    ``(h) Unnecessary Duplication.--The Secretary shall not carry out 
any activities under this section that unnecessarily duplicate 
activities carried out elsewhere by the Federal Government or industry.
    ``(i) GATT.--The Secretary shall establish, after consultation with 
other Federal agencies, terms and conditions under which Federal 
funding will be provided under this chapter that 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)).''.
    (b)(1) Section 2026(a) of the Energy Policy Act of 1992 (42 U.S.C. 
13436(a)) is amended by striking ``, in accordance with sections 3001 
and 3002 of this Act,''.
    (2) Effective October 1, 1998, section 2026 of the Energy Policy 
Act of 1992 (42 U.S.C. 13436) is repealed.

SEC. 104. DEMONSTRATIONS.

    Section 105 of Public Law 101-566 (42 U.S.C. 12404) is amended by 
adding at the end the following new subsection:
    ``(c) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the cost of any 
demonstration conducted under this section.''.

SEC. 105. TECHNOLOGY TRANSFER.

    Section 106(b) of Public Law 101-566 (42 U.S.C. 12405(b)) is 
amended by adding to the end of the subsection the following: ``The 
Secretary shall also foster the exchange of generic, nonproprietary 
information and technology, developed pursuant to this chapter, among 
industry, academia, and the Federal Government, to help the United 
States economy attain the economic benefits of this information and 
technology.''.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

    Section 109 of Public Law 101-566 (42 U.S.C. 12408) is amended--
            (1) by striking ``to other Acts'' and inserting ``under 
        other Acts'';
            (2) by striking ``and'' from the end of the paragraph (2);
            (3) by striking the period from the end of paragraph (3) 
        and inserting ``;''; and
            (4) by adding at the end of the section the following:
            ``(4) $14,500,000 for fiscal year 1996;
            ``(5) $20,000,000 for fiscal year 1997;
            ``(6) $25,000,000 for fiscal year 1998;
            ``(7) $30,000,000 for fiscal year 1999;
            ``(8) $35,000,000 for fiscal year 2000; and
            ``(9) $40,000,000 for fiscal year 2001.''.

                          TITLE II--FUEL CELLS

SEC. 201. INTEGRATION OF FUEL CELLS WITH HYDROGEN PRODUCTION SYSTEMS.

    (a) Not later than 180 days after the date of enactment of this 
section, and subject to the availability of appropriations made 
specifically for this section, the Secretary of Energy shall solicit 
proposals for projects to prove the feasibility of integrating fuel 
cells with--
            (1) photovoltaic systems for hydrogen production; or
            (2) systems for hydrogen production from solid waste via 
        gasification or steam reforming.
    (b) Each proposal submitted in response to the solicitation under 
this section shall be evaluated on a competitive basis using peer 
review. The Secretary is not required to make an award under this 
section in the absence of a meritorious proposal.
    (c) The Secretary shall give preference, in making an award under 
this section, to proposals that--
            (1) are submitted jointly from consortia including academic 
        institutions, industry, State or local governments, and Federal 
        laboratories; and
            (2) reflect proven experience and capability with 
        technologies relevant to the systems described in subsections 
        (a)(1) and (a)(2).
    (d) In the case of a proposal involving development or 
demonstration, the Secretary shall require a commitment from non-
Federal sources of at least 50 percent of the cost of the development 
or demonstration portion of the proposal.
    (e) The Secretary shall establish, after consultation with other 
Federal agencies, terms and conditions under which Federal funding will 
be provided under this title that 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)).

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated, for activities under this 
section, a total of $50,000,000 for fiscal years 1997 and 1998, to 
remain available until September 30, 1999.

        TITLE III--DOE SCIENTIFIC AND TECHNICAL PROGRAM QUALITY

SEC. 301. TEMPORARY APPOINTMENTS FOR SCIENTIFIC AND TECHNICAL EXPERTS 
              IN DEPARTMENT OF ENERGY RESEARCH AND DEVELOPMENT 
              PROGRAMS.

    (a) The Secretary, utilizing authority under other applicable law 
and the authority of this section, may appoint for a limited term, or 
on a temporary basis, scientists, engineers, and other technical and 
professional personnel on leave of absence from academic, industrial, 
or research institutions to work for the Department.
    (b) The Department may pay, to the extent authorized for certain 
other Federal employees by section 5723 of title 5, United States Code, 
travel expenses for any individual appointed for a limited term or on a 
temporary basis and transportation expenses of his or her immediate 
family and his or her household goods and personal effects from that 
individual's residence at the time of selection or assignment to his or 
her duty station. The Department may pay such travel expenses to the 
same extent for such an individual's return to the former place of 
residence from his or her duty station, upon separation from the 
Federal service following an agreed period of service. The Department 
may also pay a per diem allowance at a rate not to exceed the daily 
amounts prescribed under section 5702 of title 5 to such an individual, 
in lieu of transportation expenses of the immediate family and 
household goods and personal effects, for the period of his or her 
employment with the Department. Notwithstanding any other provision of 
law, the employer's contribution to any retirement, life insurance, or 
health benefit plan for an individual appointed for a term of one year 
or less, which could be extended for no more than one additional year, 
may be made or reimbursed from appropriations available to the 
Department.

            Passed the House of Representatives May 2, 1995.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.