[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 461 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 461

 To establish a program to promote hydrogen fuel cells, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2003

 Mr. Dorgan (for himself, Mr. Lieberman, Mrs. Clinton, Mr. Kerry, Mr. 
   Jeffords, Mr. Corzine, Mr. Conrad, and Mr. Akaka) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To establish a program to promote hydrogen fuel cells, 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hydrogen Fuel Cell 
Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
  TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT

Sec. 101. Definitions.
Sec. 102. Hydrogen and fuel cell research and development.
Sec. 103. Coordination and consultation.
Sec. 104. Advisory committee.
Sec. 105. Report to Congress.
Sec. 106. National Academy of Sciences review.
Sec. 107. Authorization of appropriations for hydrogen production, 
                            storage, and transport.
Sec. 108. Authorization of appropriations for fuel cell technologies.
                    TITLE II--DEMONSTRATION PROGRAMS

Sec. 201. Fuel cell vehicle demonstration program.
Sec. 202. Heavy duty fuel cell vehicle fleet demonstration program.
Sec. 203. Tribal stationary hybrid power demonstration.
Sec. 204. Stationary fuel cell grant demonstration program.
                  TITLE III--FEDERAL PURCHASE PROGRAM

Sec. 301. Procurement of fuel cell vehicles.
Sec. 302. Federal stationary fuel cell power purchase program.
Sec. 303. Establishment of an interagency task force.
                TITLE IV--REMOVAL OF REGULATORY BARRIERS

Sec. 401. Amendments to PURPA.
Sec. 402. Net metering.
Sec. 403. Department of Energy study.
       TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY

Sec. 501. Hydrogen fuel cell motor vehicle credit.
Sec. 502. Credit for installation of hydrogen fuel cell motor vehicle 
                            fueling stations.
Sec. 503. Credit for residential fuel cell property.
Sec. 504. Credit for business installation of qualified fuel cells.
                    TITLE VI--EDUCATION AND OUTREACH

Sec. 601. Education and outreach.
                   TITLE VII--TARGETS AND TIMETABLES

Sec. 701. Department of Energy strategy.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States currently imports approximately 55 
        percent of the oil it consumes.
            (2) At present trends, reliance on foreign oil will 
        increase to 68 percent by 2025.
            (3) Nearly all of the cars and trucks run on gasoline, and 
        they are the main reason the United States imports so much oil.
            (4) Two-thirds of the 20,000,000 barrels of oil Americans 
        use each day is used for transportation.
            (5) Hydrogen fuel cell vehicles offer the best hope of 
        dramatically reducing our dependence on foreign oil, increasing 
        our energy security, and enhancing our environmental 
        protection.
            (6) In the spirit of the Apollo project that put a man on 
        the moon, the United States must commit the necessary resources 
        to develop and commercialize hydrogen fuel cell vehicles, in 
        partnership with the private sector.
            (7) In developing hydrogen fuel cell vehicles, the United 
        States must also support the development and commercialization 
        of stationary fuel cells to power homes and other buildings, so 
        as to diversify energy sources, better protect the environment, 
        provide assured power, and accelerate implementation of fuel 
        cell technology generally.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to promote the comprehensive development, 
        demonstration, and commercialization of hydrogen-powered fuel 
        cells in partnership with industry;
            (2) to increase our Nation's energy independence, and 
        energy and national security in doing so;
            (3) to develop a sustainable national energy strategy;
            (4) to protect and strengthen the Nation's economy and 
        standard of living;
            (5) to reduce the environmental impacts of energy 
        production, distribution, transportation, and use; and
            (6) to leverage financial resources through the use of 
        public-private partnerships.

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) the term ``critical technology'' means a technology 
        that, in the opinion of the Secretary, requires understanding 
        and development in order to take the next step needed in the 
        development of hydrogen as an economic fuel or storage medium 
        or in the development of fuel cell technologies as a 
        transportation mode;
            (2) the term ``fuel cell vehicle'' means a vehicle that 
        derives all, or a significant part, of its propulsion energy 
        from 1 or more fuel cells; and
            (3) the term ``Secretary'' means the Secretary of Energy.

  TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT

SEC. 101. DEFINITIONS.

    As used in this title--
            (1) the term ``advisory committee'' means the advisory 
        committee established under section 105; and
            (2) the term ``critical technical issue'' means an issue 
        that, in the opinion of the Secretary, requires understanding 
        and development in order to take the next step needed in the 
        development of hydrogen as an economic fuel or storage medium 
        or in the development of fuel cell technologies as a 
        transportation mode.

SEC. 102. HYDROGEN AND FUEL CELL RESEARCH AND DEVELOPMENT.

    (a) Programs.--
            (1) Hydrogen energy research and development program.--The 
        Secretary shall, in consultation with the private sector, 
        conduct a research and development program relating to the 
        production, storage, distribution, and use of hydrogen energy, 
        including fueling infrastructure, with the goal of enabling the 
        private sector to demonstrate and commercialize the use of 
        hydrogen for transportation, industrial, commercial, 
        residential, and utility applications.
            (2) Fuel cell technology research and development 
        program.--The Secretary shall conduct fuel cell technology 
        research and development, with the goal of commercializing fuel 
        cell vehicles and stationary fuel cells. The program shall 
        include advanced materials, interfaces and electronics, lower 
        cost and advanced design, balance of plant, enhanced 
        manufacturing processes, reforming capability, and analysis and 
        integration of systems.
    (b) Elements.--In conducting the programs authorized by this 
section, the Secretary shall--
            (1) initiate or accelerate research and development 
        concerning critical technical issues that will contribute to 
        the development of more economical and environmentally sound 
        fuel cell vehicles and hydrogen energy systems, including 
        critical technical issues with respect to--
                    (A) production, with consideration of cost-
                effective and market-efficient production from 
                renewable energy sources;
                    (B) transmission and distribution;
                    (C) storage, including storage of hydrogen for 
                surface transportation applications; and
                    (D) use, including use in--
                            (i) surface transportation;
                            (ii) fuel cells and components;
                            (iii) fueling infrastructure;
                            (iv) stationary applications; and
                            (v) isolated villages, islands, and 
                        communities in which other energy sources are 
                        not available or are very expensive;
            (2) give particular attention to resolving critical 
        technical issues preventing the introduction of hydrogen energy 
        and fuel cell vehicles into the marketplace; and
            (3) survey private sector hydrogen energy and fuel cell 
        research and development activities worldwide and take steps to 
        ensure that such activities under this section--
                    (A) enhance rather than unnecessarily duplicate any 
                available research and development; and
                    (B) complement rather than displace or compete with 
                the privately funded hydrogen energy or fuel cell 
                research and development activities of United States 
                industry.
    (c) Federal Funding.--The Secretary shall carry out the research 
and development activities authorized under this section using a 
competitive merit review process.
    (d) Cost Sharing.--
            (1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 20 percent of the cost of 
        proposed research and development projects under this section.
            (2) Reduction or elimination.--The Secretary may reduce or 
        eliminate the cost sharing requirement under subsection 
        (d)(1)--
                    (A) if the Secretary determines that the research 
                and development is of a basic or fundamental nature; or
                    (B) for technical analyses, outreach activities, 
                and educational programs that the Secretary does not 
                expect to result in a marketable product.

SEC. 103. COORDINATION AND CONSULTATION.

    (a) Secretary's Responsibility.--The Secretary shall have overall 
management responsibility for carrying out programs under this Act. In 
carrying out such programs, the Secretary, consistent with such overall 
management responsibility--
            (1) shall establish a central point for the coordination of 
        all hydrogen energy and fuel cell research, development, and 
        demonstration activities of the Department of Energy; and
            (2) may use the expertise of any other Federal agency in 
        accordance with subsection (b) in carrying out any activities 
        under this Act, to the extent that the Secretary determines 
        that any such agency has capabilities which would allow such 
        agency to contribute to the purposes of this Act.
    (b) Assistance.--The Secretary may, in accordance with subsection 
(a), obtain the assistance of any Federal agency upon written request, 
on a reimbursable basis or otherwise and with the consent of such 
agency. Each such request shall identify the assistance the Secretary 
considers necessary to carry out any duty under this Act.
    (c) Consultation.--The Secretary shall consult with other Federal 
agencies as appropriate, and the advisory committee, in carrying out 
the Secretary's authorities pursuant to this Act.

SEC. 104. ADVISORY COMMITTEE.

    (a) Establishment.--There is hereby established a Technical 
Advisory Committee to advise the Secretary on the programs under this 
Act and under title II of the Hydrogen Future Act of 1996, to remain in 
existence for the duration of such programs.
    (b) Membership.--
            (1) In general.--The advisory committee shall be comprised 
        of not fewer than 9 nor more than 15 members appointed by the 
        Secretary, and shall be comprised of such representatives from 
        domestic industry, universities, professional societies, 
        Government laboratories, and financial, environmental, and 
        other organizations as the Secretary considers appropriate 
        based on the Secretary's assessment of the technical and other 
        qualifications of such representatives.
            (2) Terms.--
                    (A) In general.--The term of a member of the 
                advisory committee shall not be more than 3 years.
                    (B) Staggered terms.--The Secretary may appoint 
                members of the advisory committee in a manner that 
                allows the terms of the members serving at any time to 
                expire at spaced intervals so as to ensure continuity 
                in the functioning of the advisory committee.
                    (C) Reappointment.--A member of the advisory 
                committee whose term expires may be reappointed.
            (3) Chairperson.--The advisory committee shall have a 
        chairperson, who shall be elected by the members from among 
        their number.
    (c) Cooperation.--The heads of Federal agencies shall cooperate 
with the advisory committee in carrying out the requirements of this 
section and shall furnish to the advisory committee such information as 
the advisory committee considers necessary to carry out this section.
    (d) Review.--The advisory committee shall review and make any 
necessary recommendations to the Secretary on--
            (1) the implementation and conduct of programs under this 
        title;
            (2) the economic, technological, and environmental 
        consequences of the deployment of technologies under this 
        title; and
            (3) means for removing barriers to implementing the 
        technologies and programs under this title.
    (e) Response to Recommendations.--The Secretary shall consider, but 
need not adopt, any recommendations of the advisory committee under 
subsection (d). The Secretary shall either describe the implementation, 
or provide an explanation of the reasons that any such recommendations 
will not be implemented, in the report to Congress under section 
103(b).
    (f) Support.--The Secretary shall provide such staff, funds, and 
other support as may be necessary to enable the advisory committee to 
carry out its functions.

SEC. 105. REPORT TO CONGRESS.

    (a) Report.--
            (1) Requirement.--Not later than 1 year after the date of 
        enactment of this Act and biennially thereafter, the Secretary 
        shall transmit to Congress a detailed report on the status and 
        progress of the programs authorized under this title.
            (2) Contents.--A report under paragraph (1) shall include, 
        in addition to any views and recommendations of the Secretary--
                    (A) an assessment of the effectiveness of the 
                programs authorized under this Act;
                    (B) recommendations of the advisory committee for 
                any improvements in the program that are needed, 
                including recommendations for additional legislation; 
                and
                    (C) to the extent practicable, an analysis of 
                Federal, State, local, and private sector hydrogen- and 
                fuel cell-related research, development, and 
                demonstration activities to identify productive areas 
                for increased intergovernmental and private-public 
                sector collaboration.

SEC. 106. NATIONAL ACADEMY OF SCIENCES REVIEW.

    Beginning 2 years after the date of enactment of this Act, and 
every 4 years thereafter, the National Academy of Sciences shall 
perform a review of the progress made through the programs and 
activities authorized under this Act and title II of the Hydrogen 
Future Act of 1996, and shall report to Congress on the results of such 
reviews.

SEC. 107. AUTHORIZATION OF APPROPRIATIONS FOR HYDROGEN PRODUCTION, 
              STORAGE, AND TRANSPORT.

    There are authorized to be appropriated to carry out hydrogen 
production, storage, and transport activities under this title (in 
addition to any amounts made available for such purposes under other 
Acts)--
            (1) $200,000,000 for fiscal year 2004;
            (2) $200,000,000 for fiscal year 2005;
            (3) $200,000,000 for fiscal year 2006;
            (4) $200,000,000 for fiscal year 2007;
            (5) $100,000,000 for fiscal year 2008;
            (6) $100,000,000 for fiscal year 2009;
            (7) $100,000,000 for fiscal year 2010;
            (8) $75,000,000 for fiscal year 2011;
            (9) $75,000,000 for fiscal year 2012; and
            (10) $50,000,000 for fiscal year 2013.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS FOR FUEL CELL TECHNOLOGIES.

    There are authorized to be appropriated to the Secretary for fuel 
cell technology activities under this title--
            (1) $200,000,000 for fiscal year 2004;
            (2) $250,000,000 for fiscal year 2005;
            (3) $250,000,000 for fiscal year 2006;
            (4) $200,000,000 for fiscal year 2007;
            (5) $100,000,000 for fiscal year 2008;
            (6) $100,000,000 for fiscal year 2009;
            (7) $100,000,000 for fiscal year 2010;
            (8) $75,000,000 for fiscal year 2011;
            (9) $75,000,000 for fiscal year 2012; and
            (10) $50,000,000 for fiscal year 2013.

                    TITLE II--DEMONSTRATION PROGRAMS

SEC. 201. FUEL CELL VEHICLE DEMONSTRATION PROGRAM.

    (a) Program.--The Secretary shall establish a cost shared program 
to purchase, operate, and evaluate fuel cell vehicles in integrated 
service in Federal, tribal, State, local, or private fleets to 
demonstrate the viability of fuel cell vehicles in commercial use in a 
range of climates, duty cycles, and operating environments.
    (b) Cooperative Agreements.--In carrying out the program, the 
Secretary may enter into cooperative agreements with Federal, tribal, 
State, local agencies, or private entities and manufacturers of fuel 
cell vehicles.
    (c) Components.--The program shall include the following 
components:
            (1) Selection of pilot fleet sites.--
                    (A) In general.--The Secretary shall--
                            (i) consult with fleet managers to identify 
                        potential fleet sites; and
                            (ii) select 10 or more sites at which to 
                        carry out the program.
                    (B) Criteria.--The criteria for selecting fleet 
                sites shall include--
                            (i) geographic diversity;
                            (ii) a wide range of climates, duty cycles, 
                        and operating environments;
                            (iii) the interest and capability of the 
                        participating agencies or entities;
                            (iv) the appropriateness of a site for 
                        refueling infrastructure and for maintaining 
                        the fuel cell vehicles; and
                            (v) such other criteria as the Secretary 
                        determines to be necessary to the success of 
                        the program.
                    (C) Federal sites.--At least 2 of the projects must 
                be at Federal sites.
            (2) Fueling infrastructure.--
                    (A) In general.--The Secretary shall support the 
                installation of the necessary refueling infrastructure 
                at the fleet sites.
                    (B) Co-production of hydrogen and electricity pilot 
                projects.--Priority shall be given to pilot projects 
                that integrate--
                            (i) both vehicles and stationary 
                        electricity production; or
                            (ii) hydrogen production, storage, and 
                        distribution systems with end-use applications.
            (3) Purchase of fuel cell vehicles.--The Secretary, in 
        consultation with the participating agencies, tribal, State, or 
        local agency, academic institution, or private entity, shall 
        purchase fuel cell vehicles for the program by competitive bid.
            (4) Operation and maintenance period.--The fuel cell 
        vehicles shall be operated and maintained by the participating 
        agencies or entities in regular duty cycles for a period of not 
        less than 12 months.
            (5) Data collection, analysis, and dissemination.--
                    (A) Agreements.--The Secretary shall enter into 
                agreements with participating agencies, academic 
                institutions, or private sector entities providing for 
                the collection of proprietary and nonproprietary 
                information with the program.
                    (B) Public availability.--The Secretary shall make 
                available to all interested persons technical 
                nonproprietary information and analyses collected under 
                an agreement under subparagraph (A).
                    (C) Proprietary information.--The Secretary shall 
                not disclose to the public any proprietary information 
                or analyses collected under an agreement under 
                subparagraph (A).
            (6) Training and technical support.--The Secretary shall 
        provide such training and technical support as fleet managers 
        and fuel cell vehicle operators require to assure the success 
        of the program, including training and technical support in--
                    (A) the installation, operation, and maintenance of 
                fueling infrastructure;
                    (B) the operation and maintenance of fuel cell 
                vehicles; and
                    (C) data collection.
    (d) Coordination.--The Secretary shall ensure coordination of the 
program with other Federal fuel cell demonstration programs to improve 
efficiency, share infrastructure, and avoid duplication of effort.
    (e) Cost Sharing.--
            (1) In general.--The Secretary shall require a 50 percent 
        financial commitment from participating private-sector 
        companies or other non-Federal sources for participation in the 
        program.
            (2) Commitments.--The Secretary may require a financial 
        commitment from participating agencies or entities based on the 
        avoided costs for purchase, operation, and maintenance of 
        traditional vehicles and refueling infrastructure.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $40,000,000 for fiscal year 2004;
            (2) $100,000,000 for fiscal year 2005;
            (3) $115,000,000 for fiscal year 2006;
            (4) $115,000,000 for fiscal year 2007;
            (5) $95,000,000 for fiscal year 2008;
            (6) $30,000,000 for fiscal year 2009; and
            (7) $15,000,000 for fiscal year 2010.

SEC. 202. HEAVY DUTY FUEL CELL VEHICLE FLEET DEMONSTRATION PROGRAM.

    (a) Establishment of Program.--The Secretary, in consultation with 
other Federal agencies, shall establish a program for entering into 
cooperative agreements with the private sector to demonstrate fuel 
cell-powered buses, trucks and other heavy duty vehicles.
    (b) Cost Sharing.--The non-Federal contribution for activities 
funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Reports to Congress.--Not later than 2 years after the date of 
the enactment of this Act, and not later than October 1, 2009, the 
Secretary, in consultation with other Federal agencies, shall transmit 
to the appropriate congressional committees a report that--
            (1) evaluates the process of developing infrastructure to 
        accommodate fuel cell-powered buses, trucks, and heavy duty 
        vehicles; and
            (2) assesses the results of the demonstration program under 
        this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this demonstration 
program, to remain available until expended--
            (1) $60,000,000 for fiscal year 2004;
            (2) $90,000,000 for fiscal year 2005;
            (3) $175,000,000 for fiscal year 2006;
            (4) $175,000,000 for fiscal year 2007;
            (5) $175,000,000 for fiscal year 2008;
            (6) $135,000,000 for fiscal year 2009; and
            (7) $40,000,000 for fiscal year 2010.

SEC. 203. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation with Tribes, shall develop 
and transmit to Congress a strategy for a demonstration and commercial 
application program to develop hybrid distributed power systems on 
tribal lands that combine--
            (1) one renewable electric power generating technology of 2 
        megawatts or less located near the site of electric energy use; 
        and
            (2) fuel cell power generation suitable for use in 
        distributed power systems.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for activities under this section--
            (1) $1,000,000 for fiscal year 2005;
            (2) $5,000,000 for fiscal year 2006;
            (3) $5,000,000 for fiscal year 2007;
            (4) $4,000,000 for fiscal year 2008;
            (5) $3,000,000 for fiscal year 2009; and
            (6) $2,000,000 for fiscal year 2010.

SEC. 204. STATIONARY FUEL CELL GRANT DEMONSTRATION PROGRAM.

    (a) Solicitation of Proposals.--The Secretary shall solicit 
proposals for projects demonstrating hydrogen technologies needed to 
operate fuel cells in Federal, tribal, State, and local government, and 
academic, and private stationary applications.
    (b) Competitive Evaluation.--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) Preference.--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 projects proposed.
    (d) Non-Federal Share.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require a commitment from non-Federal sources 
        of at least 50 percent of the costs directly relating to a 
        demonstration project under this section.
            (2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $45,000,000 for fiscal year 2004;
            (2) $85,000,000 for fiscal year 2005;
            (3) $95,000,000 for fiscal year 2006;
            (4) $95,000,000 for fiscal year 2007;
            (5) $65,000,000 for fiscal year 2008;
            (6) $50,000,000 for fiscal year 2009; and
            (7) $15,000,000 for fiscal year 2010.

                  TITLE III--FEDERAL PURCHASE PROGRAM

SEC. 301. PROCUREMENT OF FUEL CELL VEHICLES.

    (a) Transition Plan.--Each agency of the Federal Government that 
maintains a fleet of motor vehicles shall develop a plan for a 
transition of the fleet to vehicles powered by fuel cell technology, 
including plans for necessary fueling infrastructure, training, and 
maintenance and operation of such vehicles. Each such plan shall 
include implementation beginning no later than fiscal year 2008. Each 
plan shall incorporate and build on the results of completed and 
ongoing Federal demonstration programs, and shall include additional 
demonstration programs and pilot programs as necessary to test or 
investigate available technologies and transition procedures.
    (b) Requirement.--The Secretary, in collaboration with the General 
Services Administration and other Federal agencies, shall purchase and 
place 20,000 hydrogen-powered fuel cell vehicles by 2010 in Federal 
fleets and the requisite fueling infrastructure.
    (c) Exceptions.--The head of an executive agency is not required to 
procure a fuel cell vehicle under subsection (c) if--
            (1) no fuel cell vehicle is available that meets the 
        requirements of the executive agency; or
            (2) it is not practicable to do so for a particular agency 
        or instance.
    (d) Procurement Planning.--The head of an executive agency shall 
incorporate into the specifications for all designs and procurements, 
and into the factors for the evaluation of offers received for the 
procurement, criteria for fuel cell vehicles that are consistent with 
vehicle purchasing requirements.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $10,000,000 for fiscal year 2005;
            (2) $15,000,000 for fiscal year 2006;
            (3) $50,000,000 for fiscal year 2007;
            (4) $150,000,000 for fiscal year 2008;
            (5) $175,000,000 for fiscal year 2009;
            (6) $170,000,000 for fiscal year 2010;
            (7) $110,000,000 for fiscal year 2011;
            (8) $65,000,000 for fiscal year 2012; and
            (9) $55,000,000 for fiscal year 2013.

SEC. 302. FEDERAL STATIONARY FUEL CELL POWER PURCHASE PROGRAM.

    (a) Program.--The Secretary shall establish a program within 1 year 
after the date of enactment of this Act for the acquisition by Federal 
agencies of--
            (1) up to 200 megawatts of commercially available fuel cell 
        power plants;
            (2) up to 200 megawatts of power generated from 
        commercially available fuel cell power plants; or
            (3) a combination thereof, by 2006 and annually thereafter 
        for use at federally-owned or -operated facilities, Federal 
        residences, and Federal portable applications. The Secretary 
        shall provide funding for purchase, site engineering, 
        installation, startup, training, operation, and maintenance 
        costs associated with the acquisition of such power or power 
        plants, along with any other necessary assistance.
    (b) Domestic Assembly.--All fuel cell systems in power plants 
acquired, or from which power is acquired, under subsection (a) shall 
be assembled in the United States.
    (c) Site Selection.--In the selection of federally-owned or -
operated facilities as a site for the location of power plants acquired 
under this section, or as a site to receive power acquired under this 
section, priority shall be given to sites with 1 or more of the 
following attributes:
            (1) Location (of the Federal facility or the generating 
        power plant) in an area classified as a nonattainment area 
        under title I of the Clean Air Act.
            (2) Computer or electronic operations that are sensitive to 
        power supply disruptions.
            (3) Need for a reliable, uninterrupted power supply.
            (4) Academic institution.
            (5) Rural or remote location, or other factors requiring 
        off-grid power generation.
            (6) Critical manufacturing or other activities that support 
        national security efforts.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $5,000,000 for fiscal year 2004;
            (2) $10,000,000 for fiscal year 2005;
            (3) $15,000,000 for fiscal year 2006;
            (4) $50,000,000 for fiscal year 2007;
            (5) $75,000,000 for fiscal year 2008;
            (6) $85,000,000 for fiscal year 2009;
            (7) $75,000,000 for fiscal year 2010;
            (8) $50,000,000 for fiscal year 2011;
            (9) $25,000,000 for fiscal year 2012; and
            (10) $10,000,000 for fiscal year 2013.
    (e) Life Cycle Cost Benefit.--Any life cycle cost benefit analysis 
undertaken by a Federal agency with respect to investments in fuel cell 
products, services, construction, and other projects shall include an 
analysis of environmental, power reliability, and oil dependence 
factors.

SEC. 303. ESTABLISHMENT OF AN INTERAGENCY TASK FORCE.

    (a) Establishment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall establish an interagency 
task force led by the Secretary's designee and comprised of 
representatives of--
            (1) the Office of Science and Technology Policy;
            (2) the Department of Transportation;
            (3) the Department of Defense;
            (4) the Department of Commerce (including the National 
        Institute of Standards and Technology);
            (5) the Environmental Protection Agency;
            (6) the National Aeronautics and Space Administration; and
            (7) other Federal agencies as appropriate.
    (b) Duties.--The task force shall develop a plan for carrying out 
titles II and III.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the 
requirements of this section.

                TITLE IV--REMOVAL OF REGULATORY BARRIERS

SEC. 401. AMENDMENTS TO PURPA.

    (a) Adoption of Standards.--Section 113(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by 
adding at the end the following:
            ``(6) Distributed generation.--Each electric utility shall 
        provide distributed generation, combined heat and power, and 
        district heating and cooling systems competitive access to the 
        local distribution grid and competitive pricing of service, and 
        shall use simplified standard contracts for the interconnection 
        of generating facilities that have a power production capacity 
        of 250 kilowatts or less per unit.
            ``(7) Distribution interconnections.--No electric utility 
        may refuse to interconnect a generating facility with the 
        distribution facilities of the electric utility if the owner or 
        operator of the generating facility complies with procedures 
        adopted by the State regulatory authority and agrees to pay the 
        costs established by such State regulatory authority.
            ``(8) Minimum fuel and technology diversity standard.--Each 
        electric utility shall develop a plan to minimize dependence on 
        1 fuel source and to ensure that the electric energy it sells 
        to consumers is generated using a diverse range of fuels and 
        technologies, including renewable and high-efficiency 
        technologies.
            ``(9) Prohibited rates and charges.--No electric utility 
        shall charge the owner or operator of an on-site generating 
        facility an additional standby, capacity, interconnection, or 
        other rate or charge.''.
    (b) Time for Adopting Standards.--Section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by 
adding at the end the following:
    ``(d) Special Rule.--For purposes of implementing paragraphs (6), 
(7), (8), and (9) of subsection (b), any reference contained in this 
section to the date of enactment of the Public Utility Regulatory 
Policies Act of 1978, shall be deemed to be a reference to the date of 
enactment of this subsection.''.

SEC. 402. NET METERING.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(11) Net metering.--(A) Each electric utility shall make 
        available upon request net metering service to any electric 
        consumer that the electric utility serves.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978, shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) The Commission shall implement the standards set out 
        in this section not later than 1 year after the date of 
        enactment of this paragraph. Notwithstanding subsections (b) 
        and (c) of section 112, a State may adopt alternative standards 
        or procedures regarding net metering as defined in this 
        section; provided that net metering service, pursuant to 
        standards and procedures adopted by the Commission, shall be 
        available to any electric consumer within any State 
        notwithstanding the adoption by any State of such alternative 
        standards or procedures.
            ``(D) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall consider and make a 
        determination concerning whether it is appropriate to implement 
        the standard set out in subparagraph (A) not later than 1 year 
        after the date of enactment of this paragraph.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(i) Net Metering.--
            ``(1) Rates and charges.--An electric utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class to which the owner or operator would be assigned 
                if there were no on-site generating facility; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) Measurement.--An electric utility that sells electric 
        energy to the owner or operator of an on-site generating 
        facility shall measure the quantity of electric energy produced 
        by the on-site facility, using a single meter unless the 
        electric utility can establish to the State regulatory 
        authority that a single meter is not technically feasible, and 
        the quantity of electric energy consumed by the owner or 
        operator of an on-site generating facility during a billing 
        period is in accordance with normal metering practices.
            ``(3) Electric energy supplied exceeding electric energy 
        generated.--If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility exceeds the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility during the billing period, the 
        electric utility may bill the owner or operator for the net 
        quantity of electric energy sold, in accordance with normal 
        metering practices.
            ``(4) Electric energy generated exceeding electric energy 
        supplied.--If the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (2); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
            ``(5) Safety and performance standards.--An eligible on-
        site generating facility and net metering system used by an 
        electric consumer shall be interconnected provided the facility 
        meets all applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories.
            ``(6) Additional control and testing requirements.--The 
        Commission, after consultation with State regulatory 
        authorities and nonregulated electric utilities and after 
        notice and opportunity for comment, may adopt, by rule, 
        additional control and testing requirements for on-site 
        generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
            ``(7) Definitions.--For purposes of this subsection--
                    ``(A) the term `eligible on-site generating 
                facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 10 kilowatts or less per 
                        unit that is fueled by solar energy, wind 
                        energy, or fuel cells; or
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 500 kilowatts or less 
                        per unit that is fueled solely by a renewable 
                        energy resource, landfill gas, or a high 
                        efficiency system;
                    ``(B) the term `renewable energy resource' means 
                solar, wind, biomass, or geothermal energy;
                    ``(C) the term `high efficiency system' means fuel 
                cells or combined heat and power; and
                    ``(D) the term `net metering service' means service 
                to an electric consumer under which electric energy 
                generated by that electric consumer from an eligible 
                on-site generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.''.

SEC. 403. DEPARTMENT OF ENERGY STUDY.

    The Secretary, in consultation with other Federal agencies, as 
appropriate, shall identify barriers to the introduction of portable 
fuel cells, including regulatory barriers, and take appropriate action 
to eliminate such barriers in a timely fashion.

       TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY

SEC. 501. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30B. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the new qualified hydrogen fuel cell motor vehicle credit 
determined under subsection (b).
    ``(b) New Qualified Hydrogen Fuel Cell Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), the new 
        qualified hydrogen fuel cell motor vehicle credit determined 
        under this subsection with respect to a new qualified hydrogen 
        fuel cell motor vehicle placed in service by the taxpayer 
        during the taxable year is--
                    ``(A) $4,000, if such vehicle has a gross vehicle 
                weight rating of not more than 8,500 pounds,
                    ``(B) $10,000, if such vehicle has a gross vehicle 
                weight rating of more than 8,500 pounds but not more 
                than 14,000 pounds,
                    ``(C) $20,000, if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds, and
                    ``(D) $40,000, if such vehicle has a gross vehicle 
                weight rating of more than 26,000 pounds.
            ``(2) Increase for fuel efficiency.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(A) with respect to a new qualified 
                hydrogen fuel cell motor vehicle which is a passenger 
                automobile or light truck shall be increased by--
                            ``(i) $1,000, if such vehicle achieves at 
                        least 150 percent but less than 175 percent of 
                        the 2000 model year city fuel economy,
                            ``(ii) $1,500, if such vehicle achieves at 
                        least 175 percent but less than 200 percent of 
                        the 2000 model year city fuel economy,
                            ``(iii) $2,000, if such vehicle achieves at 
                        least 200 percent but less than 225 percent of 
                        the 2000 model year city fuel economy,
                            ``(iv) $2,500, if such vehicle achieves at 
                        least 225 percent but less than 250 percent of 
                        the 2000 model year city fuel economy,
                            ``(v) $3,000, if such vehicle achieves at 
                        least 250 percent but less than 275 percent of 
                        the 2000 model year city fuel economy,
                            ``(vi) $3,500, if such vehicle achieves at 
                        least 275 percent but less than 300 percent of 
                        the 2000 model year city fuel economy, and
                            ``(vii) $4,000, if such vehicle achieves at 
                        least 300 percent of the 2000 model year city 
                        fuel economy.
                    ``(B) 2000 model year city fuel economy.--For 
                purposes of subparagraph (A), the 2000 model year city 
                fuel economy with respect to a vehicle shall be 
                determined in accordance with the following tables:
                            ``(i) In the case of a passenger 
                        automobile:
                                               The 2000 model year city
``If vehicle inertia weight class                      fuel economy is:
        is:
    1,500 or 1,750 lbs............................            43.7 mpg 
    2,000 lbs.....................................            38.3 mpg 
    2,250 lbs.....................................            34.1 mpg 
    2,500 lbs.....................................            30.7 mpg 
    2,750 lbs.....................................            27.9 mpg 
    3,000 lbs.....................................            25.6 mpg 
    3,500 lbs.....................................            22.0 mpg 
    4,000 lbs.....................................            19.3 mpg 
    4,500 lbs.....................................            17.2 mpg 
    5,000 lbs.....................................            15.5 mpg 
    5,500 lbs.....................................            14.1 mpg 
    6,000 lbs.....................................            12.9 mpg 
    6,500 lbs.....................................            11.9 mpg 
    7,000 to 8,500 lbs............................            11.1 mpg.
                            ``(ii) In the case of a light truck:

                                               The 2000 model year city
``If vehicle inertia weight class                      fuel economy is:
        is:
    1,500 or 1,750 lbs............................            37.6 mpg 
    2,000 lbs.....................................            33.7 mpg 
    2,250 lbs.....................................            30.6 mpg 
    2,500 lbs.....................................            28.0 mpg 
    2,750 lbs.....................................            25.9 mpg 
    3,000 lbs.....................................            24.1 mpg 
    3,500 lbs.....................................            21.3 mpg 
    4,000 lbs.....................................            19.0 mpg 
    4,500 lbs.....................................            17.3 mpg 
    5,000 lbs.....................................            15.8 mpg 
    5,500 lbs.....................................            14.6 mpg 
    6,000 lbs.....................................            13.6 mpg 
    6,500 lbs.....................................            12.8 mpg 
    7,000 to 8,500 lbs............................            12.0 mpg.
                    ``(C) Vehicle inertia weight class.--For purposes 
                of subparagraph (B), the term `vehicle inertia weight 
                class' has the same meaning as when defined in 
                regulations prescribed by the Administrator of the 
                Environmental Protection Agency for purposes of the 
                administration of title II of the Clean Air Act (42 
                U.S.C. 7521 et seq.).
            ``(3) New qualified hydrogen fuel cell motor vehicle.--For 
        purposes of this subsection, the term `new qualified hydrogen 
        fuel cell motor vehicle' means a motor vehicle--
                    ``(A) which is propelled by power derived from one 
                or more cells which convert chemical energy directly 
                into electricity by combining oxygen with hydrogen fuel 
                which is stored on  board the vehicle in any form and 
may or may not require reformation prior to use,
                    ``(B) which, in the case of a passenger automobile 
                or light truck--
                            ``(i) for 2003 model vehicles, has received 
                        a certificate of conformity under the Clean Air 
                        Act and meets or exceeds the equivalent 
                        qualifying California low emission vehicle 
                        standard under section 243(e)(2) of the Clean 
                        Air Act for that make and model year, and
                            ``(ii) for 2004 and later model vehicles, 
                        has received a certificate that such vehicle 
                        meets or exceeds the Bin 5 Tier II emission 
                        level established in regulations prescribed by 
                        the Administrator of the Environmental 
                        Protection Agency under section 202(i) of the 
                        Clean Air Act for that make and model year 
                        vehicle,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(E) which is made by a manufacturer.
    ``(c) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        29, and 30, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(2) City fuel economy.--The city fuel economy with 
        respect to any vehicle shall be measured in a manner which is 
        substantially similar to the manner city fuel economy is 
        measured in accordance with procedures under part 600 of 
        subchapter Q of chapter I of title 40, Code of Federal 
        Regulations, as in effect on the date of the enactment of this 
        section.
            ``(3) Other terms.--The terms `automobile', `passenger 
        automobile', `light truck', and `manufacturer' have the 
        meanings given such terms in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
            ``(4)  Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (c)).
            ``(5) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter with respect to a new 
        qualified hydrogen fuel cell motor vehicle shall be reduced by 
        the amount of credit allowed under subsection (a) for such 
        vehicle for the taxable year.
            ``(6) Property used by tax-exempt entities.--In the case of 
        a credit amount which is allowable with respect to a new 
        qualified hydrogen fuel cell motor vehicle which is acquired by 
        an entity exempt from tax under this chapter, the person which 
        sells or leases such vehicle to the entity shall be treated as 
        the taxpayer with respect to the vehicle for purposes of this 
        section and the credit shall be allowed to such person, but 
        only if the person clearly discloses to the entity at the time 
        of any sale or lease the specific amount of any credit 
        otherwise allowable to the entity under this section.
            ``(7) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit (including recapture in 
        the case of a lease period of less than the economic life of a 
        vehicle).
            ``(8) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(9) Election to not take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(10) Carryback and carryforward allowed.--
                    ``(A) In general.--If the credit amount allowable 
                under subsection (a) for a taxable year exceeds the 
                amount of the limitation under subsection (c) for such 
                taxable year (in this paragraph referred to as the 
                `unused credit year'), such excess shall be allowed as 
                a credit carryback for each of the 3 taxable years 
                beginning after the date of the enactment of this 
                section which precede the unused credit year and a 
                credit carryforward for each of the 20 taxable years 
                which succeed the unused credit year.
                    ``(B) Rules.--Rules similar to the rules of section 
                39 shall apply with respect to the credit carryback and 
                credit carryforward under subparagraph (A).
            ``(11) Interaction with air quality and motor vehicle 
        safety standards.--Unless otherwise provided in this section, a 
        motor vehicle shall not be considered eligible for a credit 
        under this section unless such vehicle is in compliance with--
                    ``(A) the applicable provisions of the Clean Air 
                Act for the applicable make and model year of the 
                vehicle (or applicable air quality provisions of State 
                law in the case of a State which has adopted such 
                provision under a waiver under section 209(b) of the 
                Clean Air Act), and
                    ``(B) the motor vehicle safety provisions of 
                sections 30101 through 30169 of title 49, United States 
                Code.
    ``(e) Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall promulgate such regulations as necessary to 
        carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in coordination 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency, shall prescribe such 
        regulations as necessary to determine whether a motor vehicle 
        meets the requirements to be eligible for a credit under this 
        section.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (27), by 
        striking the period at the end of paragraph (28) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(29) to the extent provided in section 30B(d)(4).''.
            (2) Section 55(c)(2) of such Code is amended by inserting 
        ``30B(c),'' after ``30(b)(3)''.
            (3) Section 6501(m) of such Code is amended by inserting 
        ``30B(d)(9),'' after ``30(d)(4),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30A the following new item:

        ``Sec. 30B. Hydrogen fuel cell motor vehicle credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 502. CREDIT FOR INSTALLATION OF HYDROGEN FUEL CELL MOTOR VEHICLE 
              FUELING STATIONS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.), as amended by this Act, is amended by adding at the end the 
following new section:

``SEC. 30C. HYDROGEN FUEL CELL MOTOR VEHICLE REFUELING PROPERTY CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
50 percent of the amount paid or incurred by the taxpayer during the 
taxable year for the installation of qualified hydrogen fuel cell motor 
vehicle refueling property.
    ``(b) Limitation.--The credit allowed under subsection (a)--
            ``(1) with respect to any retail hydrogen fuel cell motor 
        vehicle refueling property, shall not exceed $30,000, and
            ``(2) with respect to any residential hydrogen fuel cell 
        motor vehicle refueling property, shall not exceed $1,500.
    ``(c) Year Credit Allowed.--The credit allowed under subsection (a) 
shall be allowed in the taxable year in which the qualified hydrogen 
fuel cell motor vehicle refueling property is placed in service by the 
taxpayer.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified hydrogen fuel cell motor vehicle refueling 
        property.--The term `qualified hydrogen fuel cell motor vehicle 
        refueling property' means any property (not including a 
        building and its structural components) if--
                    ``(A) such property is of a character subject to 
                the allowance for depreciation,
                    ``(B) the original use of such property begins with 
                the taxpayer, and
                    ``(C) such property is for the storage or 
                dispensing of hydrogen fuel into the fuel tank of a 
                motor vehicle propelled by such fuel, but only if the 
                storage or dispensing of the fuel is at the point where 
                such fuel is delivered into the fuel tank of the motor 
                vehicle.
        In the case of hydrogen produced from another clean-burning 
        fuel (as defined in section 179A(c)(1)), subparagraph (C) shall 
        be applied by substituting `production, storage, or dispensing' 
        for `storage or dispensing' both places it appears.
            ``(2) Residential hydrogen fuel cell motor vehicle 
        refueling property.--The term `residential hydrogen fuel cell 
        motor vehicle refueling property' means qualified hydrogen fuel 
        cell motor vehicle refueling property which is installed on 
        property which is used as the principal residence (within the 
        meaning of section 121) of the taxpayer.
            ``(3) Retail hydrogen fuel cell motor vehicle refueling 
        property.--The term `retail hydrogen fuel cell motor vehicle 
        refueling property' means qualified hydrogen fuel cell motor 
        vehicle refueling property which is installed on property 
        (other than property described in paragraph (2)) used in a 
        trade or business of the taxpayer.
    ``(e) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        29, 30, and 30B, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(f) Basis Reduction.--For purposes of this title, the basis of 
any property shall be reduced by the portion of the cost of such 
property taken into account under subsection (a).
    ``(g) No Double Benefit.--No deduction shall be allowed under 
section 179A with respect to any property with respect to which a 
credit is allowed under subsection (a).
    ``(h) Refueling Property Installed for Tax-Exempt Entities.--In the 
case of qualified hydrogen fuel cell motor vehicle refueling property 
installed on property owned or used by an entity exempt from tax under 
this chapter, the person which installs such refueling property for the 
entity shall be treated as the taxpayer with respect to the refueling 
property for purposes of this section (and such refueling property 
shall be treated as retail hydrogen fuel cell motor vehicle refueling 
property) and the credit shall be allowed to such person, but only if 
the person clearly discloses to the entity in any installation contract 
the specific amount of the credit allowable under this section.
    ``(i) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (e) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).
    ``(j) Special Rules.--Rules similar to the rules of paragraphs (4) 
and (5) of section 179A(e) shall apply.
    ``(k) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.''.
    (b) Incentive for Production of Hydrogen at Qualified Clean-Fuel 
Vehicle Refueling Property.--Section 179A(d) of the Internal Revenue 
Code of 1986 (defining qualified clean-fuel vehicle refueling property) 
is amended by adding at the end the following new flush sentence:
``In the case of clean-burning fuel which is hydrogen produced from 
another clean-burning fuel, paragraph (3)(A) shall be applied by 
substituting `production, storage, or dispensing' for `storage or 
dispensing' both places it appears.''.
    (c) Modifications to Extension of Deduction for Hydrogen Refueling 
Property.--
            (1) In general.--Section 179A(f) of the Internal Revenue 
        Code of 1986 (relating to termination) is amended by inserting 
        ``(other than property relating to hydrogen)'' after 
        ``property''.
            (2) Nonapplication of phaseout.--Section 179A(b)(1)(B) of 
        such Code (relating to phaseout) is amended by inserting 
        ``(other than property relating to hydrogen)'' after 
        ``property''.
    (d) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986, 
        as amended by this Act, is amended by striking ``and'' at the 
        end of paragraph (28), by striking the period at the end of 
        paragraph (29) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(30) to the extent provided in section 30C(f).''.
            (2) Section 55(c)(2) of such Code, as amended by this Act, 
        is amended by inserting ``30C(e),'' after ``30B(e)''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code, as amended by this Act, 
        is amended by inserting after the item relating to section 30B 
        the following new item:

        ``Sec. 30C. Hydrogen fuel cell motor vehicle refueling property 
                            credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 503. CREDIT FOR RESIDENTIAL FUEL CELL PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. RESIDENTIAL FUEL CELL PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 30 percent of the qualified 
fuel cell property expenditures made by the taxpayer during such year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) shall not exceed $1,000 for each kilowatt of capacity.
            ``(2) Safety certifications.--No credit shall be allowed 
        under this section for an item of property unless such property 
        meets appropriate fire and electric code requirements.
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under this 
subpart (other than this section), such excess shall be carried to the 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified fuel cell property expenditure.--The term 
        `qualified fuel cell property expenditure' means an expenditure 
        for qualified fuel cell property (as defined in section 
        48(a)(4)) installed on or in connection with a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer, including all necessary installation fees and 
        charges.
            ``(2) Labor costs.--Expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of such property and for piping or wiring to 
        interconnect such property to the dwelling unit shall be taken 
        into account for purposes of this section.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Dollar amounts in case of joint occupancy.--In the 
        case of any dwelling unit which is jointly occupied and used 
        during any calendar year as a residence by 2 or more 
        individuals the following shall apply:
                    ``(A) The amount of the credit allowable, under 
                subsection (a) by reason of expenditures (as the case 
                may be) made during such calendar year by any of such 
                individuals with respect to such dwelling unit shall be 
                determined by treating all of such individuals as 1 
                taxpayer whose taxable year is such calendar year.
                    ``(B) There shall be allowable, with respect to 
                such expenditures to each of such individuals, a credit 
                under subsection (a) for the taxable year in which such 
                calendar year ends in an amount which bears the same 
                ratio to the  amount determined under subparagraph (A) 
as the amount of such expenditures made by such individual during such 
calendar year bears to the aggregate of such expenditures made by all 
of such individuals during such calendar year.
            ``(2) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(3) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which the individual 
                owns, such individual shall be treated as having made 
                the individual's proportionate share of any 
                expenditures of such association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(4) Allocation in certain cases.--If less than 80 percent 
        of the use of an item is for nonbusiness purposes, only that 
        portion of the expenditures for such item which is properly 
        allocable to use for nonbusiness purposes shall be taken into 
        account.
            ``(5) When expenditure made; amount of expenditure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an expenditure with respect to an 
                item shall be treated as made when the original 
                installation of the item is completed.
                    ``(B) Expenditures part of building construction.--
                In the case of an expenditure in connection with the 
                construction or reconstruction of a structure, such 
                expenditure shall be treated as made when the original 
                use of the constructed or reconstructed structure by 
                the taxpayer begins.
                    ``(C) Amount.--The amount of any expenditure shall 
                be the cost thereof.
            ``(6) Property financed by subsidized energy financing.--
        For purposes of determining the amount of expenditures made by 
        any individual with respect to any dwelling unit, there shall 
        not be taken in to account expenditures which are made from 
        subsidized energy financing (as defined in section 
        48(a)(5)(C)).
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so allowed.''.
    (b) Credit Allowed Against Regular Tax and Alternative Minimum 
Tax.--
            (1) In general.--Section 25C(b) of the Internal Revenue 
        Code of 1986, as added by subsection (a), is amended by adding 
        at the end the following new paragraph:
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under subsection (a) for the taxable year shall not 
        exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 25C(c) of such Code, as added by 
                subsection (a), is amended by striking ``section 26(a) 
                for such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this 
                section)'' and inserting ``subsection (b)(3)''.
                    (B) Section 23(b)(4)(B) of such Code is amended by 
                inserting ``and section 25C'' after ``this section''.
                    (C) Section 24(b)(3)(B) of such Code is amended by 
                striking ``23 and 25B'' and inserting ``23, 25B, and 
                25C''.
                    (D) Section 25(e)(1)(C) of such Code is amended by 
                inserting ``25C,'' after ``25B,''.
                    (E) Section 25B(g)(2) of such Code is amended by 
                striking ``section 23'' and inserting ``sections 23 and 
                25C''.
                    (F) Section 26(a)(1) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25C''.
                    (G) Section 904(h) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25C''.
                    (H) Section 1400C(d) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25C''.
    (c) Additional Conforming Amendments.--
            (1) Section 23(c) of the Internal Revenue Code of 1986, as 
        in effect for taxable years beginning before January 1, 2004, 
        is amended by striking ``section 1400C'' and inserting 
        ``sections 25C and 1400C''.
            (2) Section 25(e)(1)(C) of such Code, as in effect for 
        taxable years beginning before January 1, 2004, is amended by 
        inserting ``, 25C,'' after ``sections 23''.
            (3) Subsection (a) of section 1016 of such Code, as amended 
        by this Act, is amended by striking ``and'' at the end of 
        paragraph (29), by striking the period at the end of paragraph 
        (30) and inserting ``, and'', and by adding at the end the 
        following new paragraph:
            ``(31) to the extent provided in section 25C(f), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25C.''.
            (4) Section 1400C(d) of such Code, as in effect for taxable 
        years beginning before January 1, 2004, is amended by inserting 
        ``and section 25C'' after ``this section''.
            (5) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 25B the following new item:

                              ``Sec. 25C. Residential fuel cell 
                                        property.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply to expenditures 
        after the date of the enactment of this Act, in taxable years 
        ending after such date.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to taxable years beginning after December 31, 2003.

SEC. 504. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (i), by adding ``or'' at the end 
of clause (ii), and by inserting after clause (ii) the following new 
clause:
                            ``(iii) qualified fuel cell property,''.
    (b) Qualified Fuel Cell Property.--Subsection (a) of section 48 is 
amended by redesignating paragraphs (4) and (5) as paragraphs (5) and 
(6), respectively, and by inserting after paragraph (3) the following 
new paragraph:
            ``(4) Qualified fuel cell property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified fuel cell 
                property' means a fuel cell power plant that--
                            ``(i) generates electricity using an 
                        electrochemical process, and
                            ``(ii) has an electricity-only generation 
                        efficiency greater than 30 percent at rated 
                        power.
                    ``(B) Limitation.--In the case of qualified fuel 
                cell property placed in service during the taxable 
                year, the credit determined under paragraph (1) for 
                such year with respect to such property shall not 
                exceed an amount equal to the lesser of--
                            ``(i) 30 percent of the basis of such 
                        property, including all necessary installation 
                        fees and charges, or
                            ``(ii) $1,000 for each kilowatt of capacity 
                        of such property.
                    ``(C) Special rules.--For purposes of subparagraph 
                (A)(ii)--
                            ``(i) Electricity-only generation 
                        efficiency.--The electricity-only generation 
                        efficiency percentage of a fuel cell power 
                        plant is the fraction--
                                    ``(I) the numerator of which is the 
                                total useful electrical power produced 
                                by such plant at normal operating 
                                rates, and expected to be consumed in 
                                its normal application, and
                                    ``(II) the denominator of which is 
                                the lower heating value of the fuel 
                                source for such plant.
                            ``(ii) Determinations made on btu basis.--
                        The electricity-only generation efficiency 
                        percentage shall be determined on a Btu basis.
                    ``(D) Fuel cell power plant.--The term `fuel cell 
                power plant' means an integrated system comprised of a 
                fuel cell stack assembly and associated balance of 
                plant components that converts a fuel into electricity 
                using electrochemical means.''.
    (c) Limitation.--Section 48(a)(2)(A) of the Internal Revenue Code 
of 1986 (relating to energy percentage) is amended to read as follows:
                    ``(A) In general.--The energy percentage is--
                            ``(i) in the case of qualified fuel cell 
                        property, 30 percent, and
                            ``(ii) in the case of any other energy 
                        property, 10 percent.''.
    (d) Conforming Amendment.--Section 29(b)(3)(A)(i)(III) of the 
Internal Revenue Code of 1986 is amended by striking ``section 
48(a)(4)(C)'' and inserting ``section 48(a)(5)(C)''.
    (e) Effective Date.--The amendments made by this subsection shall 
apply to property placed in service after the date of the enactment of 
this Act, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

                    TITLE VI--EDUCATION AND OUTREACH

SEC. 601. EDUCATION AND OUTREACH.

    (a) Requirements.--The Secretary shall work with other Federal, 
State, and local agencies, and academic institutions and organizations 
to develop a public outreach and awareness program.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this title $7,000,000 for 
fiscal year 2004 and each fiscal year thereafter through fiscal year 
2013.

                   TITLE VII--TARGETS AND TIMETABLES

SEC. 701. DEPARTMENT OF ENERGY STRATEGY.

    (a) Critical Technology Plan.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall publish and transmit to 
Congress a plan identifying critical technologies, enabling strategies 
and applications, technical targets, and associated timeframes that 
support the commercialization of hydrogen-fueled fuel cell vehicles.
    (b) Contents.--The plan shall describe the activities of the 
Department of Energy, including a research, development, demonstration, 
and commercial application program for developing technologies to 
support--
            (1) the production and deployment of 100,000 hydrogen-
        fueled fuel cell vehicles in the United States by 2010 and 
        2,500,000 of such vehicles by 2020 and annually thereafter; and
            (2) the integration of hydrogen activities, with associated 
        technical targets and timetables for the development of 
        technologies to provide for the sale of hydrogen at fueling 
        stations in the United States by 2010 and 2020, respectively.
    (c) Progress Review.--The Secretary shall include in each annual 
budget submission a review of the progress toward meeting the numerical 
targets in subsection (b).
                                 <all>